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They should fit with no problems whatsoever. That year of 164 has wheels that have the same offset as the 240s if I remember correctly, which would mean that they use 20mm offset wheels. The 700 and earlier 900 series cars use 25mm offset wheels, which are what the Hydras are. The 5 mm difference shouldn't matter. Anyway, without going into further detail, yes, they will work with your car just fine and yes, 205/55/16s would a good size. Do it! And then take pictures for us =D. Can't wait to see the results!
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Kyle - '68 Volvo 142 w/71 b20b and m40...
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