Largest Tires on a 1996 Taco 4x4?

I'm trying to track down answers specific to my 1996 Tacoma before I shell out a fortune on new tires. I've read most of the threads, but don't see info on the 1996.

I bought my son the 1996 for his 16th Birthday a couple of weeks ago. It has the stock 15" steel wheels with the P225/75 R15 tires.

I picked up a set of 16x7 alloys from a 2003 last night. Here are my questions:

1. I've heard I can run the 265/75/16 tires with the stock suspension. Any opinions?

2. What about the 265/70/16 tires? Better or worse?

3. I understand that for strictly on-road driving the "C" rating is fine?

4. Is that a "P"265 or "LT"265 that I would need?

5. Last question... I have the 2.7L 5-Speed. According to the door sticker, B02A, it has either the 3.58 gears or 3.73's depending on which chart I use. I don't know how accurate that sticker is since it runs 2400 rpm's @ 65 mph and has plenty of pep. Would those gears and those tires turn this Taco into a dog?