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On the question of the smaller wheels, you'd have to weigh them to be sure but most of the time smaller wheel/tires are lighter, which would be less unsprung weight and a better ride. Also they would likely have less rotational inertia and would improve straight line performance.
Glad your car is working out for you. I bought a 2000 S tiptronic just before Christmas and I'm kind of surprised how nice the whole package is. My car has 18" wheels and personally I'd prefer 17" with a higher profile tire.
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