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I have 205s all around now on 7 inch rims. Last year I added an adjustable rear sway bar which transformed the cars handling. I used to have low speed push and virtually no power oversteer. The rear bar has given me much better throttle steer control. However, I havn't used this new setup on the cone course yet and wonder how careful I will need to be throttling off coming into corners.
I have run the same setup, 205s on 7" rims, on SWB and LWB early cars with great success. Unless you're running a modified engine in your '69, power-on oversteer will not be a big problem. There just isn't enough torque to cause huge tire spin even when stomping the gas instead of feeding it in smoothly. If you have no LSD, a bigger problem will be losing traction on the inside, unloaded tire and not being able to get the power down effectively. This may be less of a problem with a Targa, as chassis flex will help keep the inside tire on the ground. They can make surprisingly good autox cars (witness Terry Zaccone's success with "Marcel", his '68 Targa).