>Are they raced anywhere?

Everything is raced somewhere.
My experience with the Smart is that they are rather unsafe feeling.
Especially on the highway.
If they weren't so expensive I think they would be more popular.  In Canada
they are only available with diesel engines and maybe AC, PW, PL etc.

There are several companies fitting Smarts with the Suzuki GSXR motorcycle
engine.  180 hp, 13,000 rpm redline.
I guess us vanagon owners are not the only ones doing engine conversions.

http://www.jalopnik.com/cars/custom-carshot-rods-tuners/speedy-smart-the-gsxrpowered-smartuki-123772.php

http://thekneeslider.com/archives/2005/06/08/smart-car-plus-gsxr-equals-smartuki-a-very-smart-car

http://www.youtube.com/watch?v=wIkwdv1kvmo

Gary Lee