16v, what profile is your tyre? and what section? I have 205/50 R15s on my Palio 1.2, and I have the same problem. I've now learned to drive in such a way that this doesn't happen when I have a load in the back, but I'm interested in how to get this totally solved too.
I haven't had paint peeling off or anything as bad yet, though. Are you running 60 or 55 profiles? That must be why the tyre scrapes so often.
From the S10s and Palio 1.6s I'd seen here, the fenders are actually a bit wider than the 1.2 (with the bulges in the fenders), and upto 205s should go in with no problem (unlike the 1.2 which will give trouble with anything over 195s)
__________________
Alpine 9887 | TRU Tech S44 | Image Dynamics XS65 | Image Dynamics IDQ12 D2V2 | Connection Audison |