Part 1:First, let me break down what the different numbers mean.
205: Width of the tire in millimeters.
65: This is the height of the tire. The 65 means that the height is 65% of the width, in this case somewhere around 133.25mm (ballpark number). Hence a 205/65 will be "taller" than a 205/60, but they will be the same width.
R16: "R" stands for "radial", but don't worry about it, as basically every tire sold today is radial. The "16" is how big your rims are. 15 = 15 inch wheel, 16 = 16 inch wheel, etc.
So technically 205/65's will fit on the wheels without a problem, they will probably rub on the fenders. Also, the higher you make the tire, the more "sidewall flex" you will get, and you will get more roll around corners.
As for part 2, yes. If you don't have a Sport packaged Cougar, even if its the V6, it had the 15" wheels. OEM size for that is in fact 205/60R15. I would know, thats how my car is.
If you have stock wheels, I would recommend going with the OEM size given on the "tire placard" on the passenger side door jamb. Also, look at the speed rating and make sure you get at least the minimum. For 15 inch wheels, the minimum is a "T" speed rating. For 16's, its a "V" speed rating, IIRC. If you get something below the minimum, you increase your risk for a blowout and premature wear.
Hope that helps you out! If you have any other tire questions, let me know.
Sincerely, your NECO tire installer.
