I just got some 17x7 Sport Edition Fox 2 rims for my 96 850NA. Wrapped them in Yokohama ES 100's 205/45/17. They look awesome and I highly reccomend them.
Mike

I just replaced my 16" today. Went with 205/50R16 Toyo Proxes4. They are a great deal, because they are at an introductory price. They are very quiet and ride well.

I replaced Kumhos- they be a little cheaper, but dont bother. They did not wear well and are loud.

Learn everything you can about tire sizing and coding and you'll be able to make a better informed decision. You need to know about speed ratings, load ratings, tread wear ratings, sizing, tread types, and more. Go to a tire mfg site and you'll likely find all the information you need to know. I can tell you that 850's are sold with performance tires and should be replaced by the same. You do have flexability in the speed ratings and sizing though. I have Cooper "Viper", directional, H rated tires, 205/45/15" on my 850 and luv'em. They will be replaced this year with the same.

depends on your climate/weather but most people stick with a all season.
I drive my car up here in the north in the snow with all seasons. I just take it easy.
For the look. There are two types. The type where it toes in at the tread. Or the true type (more expensive) sporty. Which gives it a wider effect even though both styles have the same specs (205/55R16 or 205/50R16) both work on the 850 but if your suspension is starting to sag then 55's will rub in the wheel wheel.

easy - stick with spec 205/50/16 and you'll have no problem...

"Aggresive look" and "operate efficiently" may be contradictory. I think 16 inch is a nice size for the car.