very nice that you let us know william! thanks! as for the creation thats what i noticed too. i have tested this yesterday when i was making an item pickup action. the entity is created shortly after the server and it is created vsibile and as obstacle all the time!
so even if you set them passable at the client function you will run into them. ill do what you suggested i create them somewhere the player doesnt see them and send proper positions once a sleep(1) at the server function is finished.

good to see you advancing with your racing game. when will you release more info or even a demo?