Once you are in the photo shoot area, press X, hold your handbrake, then rev the engine and press either Left or Right. The car should do donuts. While it is doing this, take the photo. This will give a smoky look on your wheels in the picture.
Winning an outrun
Once you have found an opponent to outrun with, get in front of the opponent and get in the lead. Get as far as possible until the distance meter has reached its limit. If the distance meter starts to drop, it indicates that the opponent is catching up. When this happens, do a handbrake skid and turn the car around. Go back the way that you came from. The opponent will follow you as you are the one in lead, but he will take time to catch up, giving you an advantage to win the outrun.