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I have used 205/60R15 all season tires on my '95 850 sedan without any problems. As you mentioned the OD of these tires is not much larger than the 185/65R15. They do fill up the wheel well and I do not drive the car very hard. I live in Northeast Ohio and have never used snow tires on my 850. The front wheel drive seems to get me through our typical winters here. I do use snow tires on my 740 Wagon. Since you already have the 205/60R15 snow tires, I would go ahead and put them on the 850 and see how they perform. If you live in a very demanding winter climate, you might notice that the 185's would perform better in snow than the 205's.
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