Ok, so that I don't have to type it....the entire write-up is in a link below. Hopefully this will help.
"Toe-out and Handling
All racers know the difference between toe-in and toe-out (alignment). However, the many forms of toe-out can be confusing or misunderstood. Toe-out can be found in at least one of five main forms; static toe out, toe out on turns "ackerman steering", t oe out due to bump steer, steering arm toe out, and toe out due to slip angles.
The most commonly known form of toe-out is "static" toe-out. This is where the tie rods are adjusted such that the front edges of the tires to be farther apart than the rear edges of the tires when viewing the car from above....
An unusual form of toe-out can occur at the tire's contact patch rather than at the wheel. Because the outside tire in a corner is more heavily loaded than the inside tire, the outside tire will run at a larger slip angle than the inside tire (despite th e name "slip angle," it has nothing to do with slip but rather the twisting of the contact patch in relation to the rim). This additional twist in the outside contact patch can result in the contact patches being toed-out.
These various forms have advantages and disadvantages. The objective in using toe-out with a race car is to increase the turning force generated at the front of the car. So, if your race car understeers (pushes) in the middle of a turn, then a little toe- out may help reduce or cure your problem.
The trick with toe-out is not to apply such a large amount as to cause the inside tire to exceed its grip and make it slide. This will reduce the overall turning forces. However, if the proper amount of toe-out exists, then the inside tire will generate a larger drag force. This drag force creates a torque (moment) on the whole car and helps turn it in the correct direction. The effect is essentially the same as a "cutting brake" on a dune buggy.
The additional twisting of the inside tire will help to increase the tread temperature, as well. This will help to increase the coefficient of friction and the inside tire can develop more grip for turning."
Here is the link :
http://www.auto-ware.com/setup/toe_hand.htm