500sleuro

Just got my new 2003 c 32 and in reverse a clunking sound. Took it to dealer and they said that my front left bearing was totally shot and also the hub. ($456). Then they told me it was caused by the 19 in wheels that are on the car, and when I drove home from dealer more clunking this time as I was driving foward. They said that now that bearing is fixed the tire is correct and this is why the bearing failed. I went to look at car and on top of the front tire there is about 1/4 clearance to the coilspring base. and it overhangs the tire about 1 inch. Any ideas to keep using this set up or do I need to mod, or change wheels. Also ideas as to a good all around tire for moderate driving in new england.
Thanks for any help.