17in wheels are ok with 205 as long as they are not over 7.5j wide.
The best setup for 17's are 215. To be totally honest 17in wheels are a tad too big on an mk3/4 to allow for decent amount of Handling body roll and height of the car.

id love to use 17in wheels but it compromises too much id much rather have the handling.

Don't forget these are all road going sizes. All changes again when talking radial slicks.