You flew with the instructor and he said you did well for your first day. Now you think you're not cut out to fly RC because the Simulator isn't set up right?

Listen to your instructor. Spend more time with the instructor. There are several things that the simulator could be doing to you, or it might in fact be pointing out mistakes the instructor will be working with you on.

For example: Can you fly the trainer on the simulator and keep the plane flying straight and level without stick input? If not, the trims on the controller might not be set correctly. If you can, then the behavior of climbing out of turns is due to pilot error.

I disagree with your friend about the pylon racing. Learn to make level steady turns, then worry about where those turns occur. To keep the plane level in a normal banking turn, you need to adjust your stick input based on what the plane is doing. You must coordinate elevator and ailerons, and as you learn more, maybe even rudder input. It takes practice.

Climbing on exit from a turn is a common indicator that you are holding your elevator input too long after leveling the wings. As you level the wings, you must reduce elevator to prevent climbing. If the nose is dropping, reduce your bank angle SLIGHTLY, and add some elevator.

The key to learning is small, steady, smooth control inputs. Just like driving a car. The simulator will help, but stick with the instructor.

Brad