So based off the Jegs link Brian posted above it appears that the TKO rear shift location is 19.5" or 16.75" in the reversed position and it sounds like ERA says that 17.8" is ideal -- I think the 16.75 position should work nicely. I'd rather have it more forward than too far back.
Regarding tires: I'm a little nervous putting a decent amount of power through 205's but I'd love to try some Avons. Guess its all about self control