I have run or fitted dozens of oversize tyres to D3's D4's and Sports. If you want pics, PM or email me your email address and I'll send a few.
One would assume that if you're fitting oversize tyres, you are going to be doing a fair bit of moderate to hard off-roading. In these conditions, the wheel articulation is such that you can often get a wheel tucked up to virtually the bump-stops, which is considerably higher into the wheel-well than just access-height. This is (pretty much) regardless of shortened rods or LLAMS.
This is why I say the 265/70R18 won't fit - it will rip your wheel-well liners and itself to shreds. But if you want to waste your money, go ahead. The 265/65R18 will work off-road, but there will still be some rubbing issues at extreme articulation, particularly the front half of the rear wheel-well's. The fix is fairly simple, as described above.
Cheers,
Gordon

