Paultvx, it depends. Do you want the tires to stick out as much as possible for lateral stability/looks or do you want the biggest diameter possible with the least impact on the cladding?? For the latter, more backspacing is desirable to minimize the pivot radius. However, on a stock VX you cannot use a backspacing on the front axle greater than stock (5.5") or the rim and/or wheel weights will hit the upper ball joint. However, once the wheel diameter reaches 18" or greater, the backspacing can increase slightly beyond this. I'm trying to find some 16" wheels myself; I'll be puting 255/85R16 tires on them (33" O.D.) and modifying the cladding. I'll be using different wheels in the rear (16x8) for 285/75R16 tires, which have the same diameter. In any case, be mindful of getting aftermarket wheels for the front axle; most won't accomodate the large hubs.
I just reread your post and maybe I answered the wrong question. If you want better handling, stick with the 18" rims. I have 18" with 1.25" spacers which reduce the backspacing to 4.25". The wheels look great (they are on the verge of sticking out but don't) and the cornering is awesome. However, a wheel which was 8" to 9" wide without the spacer would be an even better solution (again, hard to find). I'm curious: why go to 16" wheels if you're not going to use them for off-road? What exactly are you trying to accomplish?
-- Quest