Big Al - 98 IB 4x4 5.2L w 3.55 [NC]
al-east@earthlink.net
The external observer "should" be able to localize exactly where the noise is coming from so you'll know where to focus your attention on finding what's causing it.
As for the tire size thing.
The D can come with 5 different "factory spec" tire sizes and 275R60/17 is one of those. Also, while it "is" possible for a wheel to be "too narrow" or "too wide" for a particular tire size, none of the available "factory spec" wheels fall into this category — as long as the tire on them is a "factory spec" size. Are your wheels actually "factory spec" or are they aftermarket? If they're "factory spec", then the tire place is completely wrong about the tire/wheel combo being "out of spec"!
Also, the "largest" factory tire size available for the D is 31x10.5 (with a diameter of 30.5") The tire place's "recommended" size of 285R65/17 (with a diameter of 31.6") would be 1.1" larger than "any" factory spec tire and would be like putting 32" tires on your D — which "would" give you sever tire rubbing problems on anything except the mildest of turns.
You can draw your own conclusions but, if it was me, I'd find myself another "favorite" tire shop!