why do people always give answers that are just over the top?..
'the only real option' well tubbing the arches is ONE option
but by the sounds of it, the OP hasn't actually lowered the car, the cones have collapsed and the car has dropped. If you like the lowered look, then get some adjustable height hi lows. then you can set the height to wherever you like, adjusting it enough so that the tires don't rub the arches...
but in answer to your question...
yes harder dampers would solve the problem, at the risk of losing a great deal of ride comfort. I'd recommend Gaz or Spax adjustable shocks... but really the problem lies with old suspension cones that have collapsed over the years and need replacement or upgrade.
Sam
Edited by chappy, 01 April 2011 - 07:41 PM.