Jack,

I drive an 95 854 Turbo with 205/50/16 snow tires (Blizzaks and Michelin Aplinas) and do fine in the Sierras in the winter. Two cautions: first, remember that you don't have a lot of ground clearance and busting through berms with this car will be nothing like what you've done with a SUV. Deep snow will find you driving what amounts to a snow plow. Second, if you choose to run a wide tire (e.g., 205s) you will encounter significant understeer. The advice to look into 185s is good - a lot less flotation.

I've never driven studded tires but it does seem a compromise on wet or dry pavement. The only advantage would seem to be on icy roads.

Still, the T5 is a fine choice - one that I wish I'd made when I bought mine.