Okey I have given it a few days to see if any problems arise since the day I initially believe I solve my problem, just to be sure.
When a problem like this occurs everyone is usually quick of the mark to firstly blame the game developer S397 for reasons they don't understand, usually because the game crashes playing the title. Secondly they will blame nVidia and its drivers, thirdly they will point the finger at Oculus. Truth is guys its most likely your system configuration, to learn what is the actually problem you have to be good at diagnosing the problem yourself, a PC is a mish mash of many different parts and components, commonly built by ourselves and never rigorously tested by anyone else but ourselves.
I must admit I was quick to following the same paper trail, but I like solving problems and puzzles.
My first step was to try and find a way to monitor the crash, windows does this already through the "Event Viewer", type it in your win10 search box. Then look at administrative events. Windows collects any reports of problems or crashes , warnings or errors there, it is a very handy tool.
Try to locate the time of the event where VR crashed in my case it was "nvlddmkm has stopped working and successfully recovered", this was the point my oculus stopped working. What you have to do now its work your way back in time to see what else flagged up as error or warning that lead to the crashing of the driver. If you can't find anything of significance trust me thats a good thing and your system is doing well. Next step....
Oculus comes with the debug tool you may use this to Supersample the image quality but it also comes with Logs in the Service menu recording Rift use and communication, the latest session is at the bottom and where you will find more information what happened at the time nvlddmkm crashed. In my case again around the same time within seconds I could see my sensors where struggling or cutting out. Now I read about problems about a year ago with ASMedia USB Controllers which my mobo comes with and Oculus. Many people complained about problems, but because it was working I never thought that was the problem. If it wasn't for the oculus logs constantly reporting problems with sensors I would of never followed this up. Oculus recommend Inateck 3.0 USB Card so at £20 I thought I would give it a go to see if it solves the problem. Low and behold, oh my God I have got a brand new gaming system.
Not only did this solve my oculus crashing the nvidia driver it has brought so much USB bandwidth to my system, supplying more power to my sensors so they dont crash out but also realising that there was a USB bandwidth problem before hand. Now my system feels 30% faster atleast, on most tracks I am able to run all options in rFactor on full and ultra, its transformed my gaming experience, its like I got the next gen graphics card for only £20.
I run an MSI Z370 gaming carbon AC pro with the worst VR ready USB 3.0 ports known to human society, an 8700k intel proccy OC to 4.8ghz non turbo as in permenant and a GTX1080 MSI gaming X running at 2088mhz. The PCI USB card has made heaven and hell difference to my gaming, rock solid stability and atleast 30% more performance.
Bottom line message guys is dont be too quick to blame the game maker understand your PC is a custom unique bit of kit that S397 cant test all configurations, use your brain diagnose your own problem, ask questions.
Here is a demo of rFactor in full graphic detail ultra reflections ultra shadows ultra effects all on and a 40 car field and lots of fun in VR
this is also one of the tougher tracks to render.
Enjoy and I hope I tought you something, nothing like helpful free info and solutions.