I would suggest a couple of things:

1. Urethane busings in the front suspension.

2. Make sure all other bushings are good.

3. Put at least 195/65 15s on it. They are less than .4" shorter overall. About 1 mph difference at 70mph. The lower aspect ratio is not going to hurt you a bit! Since you have overdrive 205/60s are just a tad shorter but still tend to be a good fit. Most important is to check tire clearance in the front at full lock. every where else seems to have good clearance. From my perspective a 15x6' with 1" offset is pretty hard to go wrong with.

4. Find a set of late 80's/early 90s Bronco II wheels in 15x6". They are a perfect fit with 195/65 tires. 205/60s are fine too and no problems with clearance anywhere. They look good, are cheap. and a set of 140 trim rings dress them right up. On a wider tire, i think that extra 1/2 inch makes a difference.

4. Definitely, make sure you have no toe out!

5. I have a standard IPD bar in the front (28 mm I believe) I prefer it over the stock one.

6. I can't say I am a big fan of KYBs. In fact i just don't like em much at all. (no offense intended) I have Bilsteins on my wagon and they were a MAJOR improvement in handling.

220s do seem a little "waggly" in the rear, but they are pretty stable all the way up to the point where they break away. They tires will REALLY squall before they let loose. But mine will swap ends pretty quickly once they finally lose traction. In general though, although they feel a little "loose", it is pretty amazing how hard (or stupid) you have to drive em, to get in trouble.

I've been driving my 220 for about 9 months and have put about 20K on it. I added a set of John Parker's lowered springs (progressive front, straight rate rears) to top it all off and my wagon handles simply awesome. To get the most out of it, use a smooth sure hand really pays off. A note of caution, mine doesn't like being jerked around I can bring out bigtime oversteer by being hamhanded. I have scared myself!!

I think once everything is in shape and dialed in you will feel much more secure.

Oh yeah, find somehere to really wring it out. Do a little autocrossing. A nice controlled environment to explore the cars limits. It's a great confidence builder.

Hope this is some fodder to consider. I 'm certainly not the expert, but I put a lot of very satisfied miles on mine.

Mike