My wife's 03 XLT came w/ 245/65/17. I want a tire that's a little wider to fill the fender well. Does anybody know if 265/60/17 will work with the factory wheel and not rub? Thanks.

You aren't really changing diameter you are changing width of the tire. The stock tires are about 9.5" wide while the new tires are 10.5"

Here are the standard measurements:

265-60-17 = 30x10.50x17
245-65-17 = 30x9.50x17

http://www.dakota-truck.net/TIRECALC/tirecalc.html

-Drew