Looks like the same problem I had on my AUTOart 206 WRC, the part that allows the wheel to turn, which on the real car would be the shock absorber, had gone off its mounting point. I simply moved it back in it, by moving it back and forth.
Oh man that doesnt sound good :|... Can you possibly email the seller and see if theyll pay to send it back seeing as they sent you a faulty car?
Just downloading the photos of Prince Charles off my camera, as he dropped by my old school today, then will get some photos of it up.
Dam, you have had a busy day, thks for taking the time to post some pics up.