New wheels and tires. After a lot of research I decided on the following setup and couldn't be happier.
Wheels: 18x8 +45 offset Tenzo Type M
Tires: Continental Extreme Contact 215/40/18
Suspension: Stock MCS

The wheels sit perfect in the wheel wells. No rubbing. In fact, I could probably use a small spacer and bring them out a hair (maybe 3-5mm).

Big thanks to AccessTD for his advise & bringing his car over for me to look at before purchasing the wheels/tires.

Next is the H&R Springs. The Mini Mud Flaps are on order.

 

normally don't like black w/ red stripe but on that color combo it looks awesome!

 

Same with me, but when they were put on i really like the look. I think it looks better in person than it does in pictures. Can't wait to install the springs now.

 

With your setup, how much clearance do you have between the tire/wheel and the inner suspension? I'm curious if anyone has fit an 18x8.5 and what offset was required. I think it's a little too big.

 

Looks good. What did the rims weigh?

 

Socially Distorted - There isn't much clearance b/w the suspension and the wheel. the +45 offset with a 8" wide wheel looks to be the max that would fit. You would definitely need a much lower offset to get an 8.5" wheel. I think if I went with a 225 tire, the tire would rub. So far, so rubbing at full lock. I think I'm going to go with a small spacer to bring them out a little. Don't get me wrong, I'm happy with it, but I think a couple of mm pushed out would make it that much better without going beyond the wheel well arches.

Braminator - I weighed them before I installed them and if I remember correctly 22-23lbs comes to mind. The wheel/tire setup was about 8 lbs heavier per wheel than my stock 17's. I notice a slight difference when shifting (I have an auto) from 2nd to 3rd (takes a little longer), but I'm real detailed oriented. I doubt any normal person would notice. Biggest thing I noticed was the improved ride quality and reduced road noise going to the Non-Runflats. I was skeptical at first, but really came down to $$$. The NonRF were ~$550, the runflats were over $1000. I'm really happy with my decision.

 

Yeah, I think a 3mm spacer would be about perfect for the rear end to sit flush. Looks good.

My thoughts with a 8 1/2" wide wheel is to mount up the 2010 Subaru STI Limited 18" wheel and run an 18-20mm adapter. The setup would end up with a 35-37mm offset. I did a Photochop of this wheel on a Mini R53 and it looks really good! IMO. But it may. It work since it would push the outer lip out about 30mm from stock.