[Erik Hanoy]

Turns out this topic has come up before on the forums... by me actually!

http://www.simracingsystem.com/showthread.php?tid=1766

Blue flag doesn't mean "let them pass" it means "don't defend". In the example above, this is what you do when the race is essentially in a state where your position on the field is very unlikely to change... that's the only time you literally let them pass. All other times you should be racing your race... but if you have a blue flag AND they are in a situation to safely overtake you, allow it to happen without any defense.

In your example I would say if you are faster than they are, you just keep pulling away from them even though you have a blue flag in your HUD. It might get annoying, but just keep glacing in your mirror and/or checking RealTime differences between you and him. If they start to pick up the pace, don't put up any defense and let them by eventually.