You can fit up to a 225/60/15 if you really want to, I've hade a set of those on virgos on both an 84 sedan and an 86 wagon. Handled pretty good for a rusty piece crap that my first volvo was. IMHO I'd go with a 205 or 215/60/15 and pick something in a performance all season tire, I have a set of Falken ZE512's and love them. Japanese made tire, not some POS chinese made tire.
You should be able to mount a set of 6x9's under the back shelf from inside the trunk with no issues, thats what I did in my 84 sedan. The sound was a big improvement, a set of newer same size front door speakers won't hurt as well.
Good luck
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