Hi , your post has interested me in so much as , the following message is one that i have just posted re 17" wheels ride height. Your handling problem seems very similar to mine! Please read on....
Hi , I run 245/40/17s on my 91 325i and there are no steering problems whatsovever , ie tyre to body clearance. (M3 alloys)
The only problem I am having in regards to handling is that the steering is continually trying to take it's own course and needs permanent correction! This is nothing to do with tyre or rim size but hopefully related to the fact that when i bought the car, about 2 weeks ago , i noticed that the previous owner had a 235 and a 245 on the front! Different tread patterns and low on tread depth. All four tyres will be replaced will either 235 or 245s very shortly (ouch!) and hopefully this will correct the problem.
Only other problem at the moment is that the leccy windows and sunroof have decided to stop working...suddenly. Hopefully just the relay. Ive just purchased a manual for the car but the 'comfort' relay in the picture doesn't seem to relate to its said location under and behind the passenger glove box. So until i locate for definate , i have no way of knowing whether it clicks or not for further diagnosis.