Drift Setup

Drivetrain = A limited slip differential is considered essential for drifting. This reduces the maximum traction through the rear wheels.

Suspension = Stiff springs are used to reduce body motion. Dampers are fine tuned to perfect drift transitions from corner to corner. Massive negative camber angles are applied to the front wheels. The rear wheels get a small amount of negative camber. 

Engine = Many cars run the bulletproof SR20 engine. This engine can be modified a great deal and when fully tuned it will put out 400-850 bhp. 

Steering = The steering angle is greatly increased allowing the driver to get bigger drift angles. With a well setup suspension system many cars are able to achieve a 90degree angle without spinning.

      

SR20 DET Engine

 

Camber

Thanks to Google Images for the pics

Thanks to Forza Motorsport 4 for information on setups