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Xogroroth-666 Use "Options->Choose a different Freelancer Directory" in FLMM if you reinstalled FL elsewhere. You can also change difficulty manually. Open My Documents/My Games/Freelancer/PerfOptions.ini, find a parameter called DIFFICULTY_SCALE (default 1.00). This is (apparently) a coefficient of damage dealt to player.

I believe someone's uploaded a save game from the "after the Hovis race" point. Besides, I saw MF showing a video of acing that race in a Clydesdale and I also remember completing it in a Basilisk with my nonexistant pilot skills.