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      09-23-2012, 10:21 PM   #3

Drives: 2011.75 E90 M3
Join Date: Aug 2011
Location: PA

iTrader: (0)

1) Set seat height such that head is about one fist height (i.e., 2-3 inches) from the ceiling. Maybe allow more room if planning to wear a helmet. Do this first since adjusting the height will often have an effect on the forward/backward position.
2) Set seat forward/backward distance such that leg is still slightly bent when brake is fully depressed.
3) Adjust seat recline to comfortable position. Usually track position is more upright than daily driving/cruising position.
4) Adjust steering wheel angle and distance for gauge visibility and arm position (as OP mentioned, optimal for wrist to be over top of wheel at full extension).

Here's a good video on the subject: