The increased profile on the new tyres means that the sidewalls bulge slightly further out than the old ones did, so they catch the arches. I've stuck it back on my old steels now (wahay.. byebye ability to stop without locking up..).
I'm so tempted just to take a hammer and tap back the lips of the arches that the tyres are catching on.. probably end up bucking the whole panel though.. can't afford to have the arches rolled or pay for new rubber until I get my bonus from work, which isn't until the end of march, and until then I have 9 alloys sitting in a pile in my back garden