how to set up the pedals?

Hi, my name is Fernando and I am an independent consultant for Microsoft products.

Since your issue is about a specific device, I'll suggest you contact the official manufacturer website to get support:

https://www.e-pxn.com/contact-us

Here you can found additional information for your device:

https://www.e-pxn.com/products/racing-wheel/pxn...

All the ones I've seen come with pedals but I believe you can do some remapping of the controls to not have to use the pedals but there would be no sensitivity to the gas and braking as it'd either be on or off if it was set to a button as opposed to being
set to the pedals/somewhat like triggers in the controller.

Imo using the adaptive controller in co-pilot mode would be a great replacement for the elite controller.

Set up foot pedals to replace the paddles.

I dont think it's Kinectified, so I would imagine it must use some sort of accelerometer.

As Naffry said, how responsive it is will be the million dollar question, I can't honestly see it competing with a wheel/pedal set-up but somewhere inbetween could be interesting.

The official MS wheel is very good and not Hundreds of dollars. I have got one but haven't got a good set up for it, ( Seat and mount ) so I tend to use the controller mostly. if you go for a wheel you need to consider how you are going to set it up. You
need it to be in a good driving position with the pedals. Racing seats vary in price so shop around. There are some cheaper options online or do what a lot of people do and make a set up yourself if you have the time and know how.