I wouldn't change your tire size for gas milage. Ther are plenty of online tips on how to conserve gas. Link: http://www.ehow.com/how_2057662_save-gas.html
The size of the engine alone will not
determine gas mileage. There are many other
factors including vehicle weight, design of the motor, etc. So in answer to
question 1, size isn't going to matter.
For question #2, make sure you change the
oil, oil filter, air filter and keep the tires inflated to recommended specs.
That might help you out a bit...
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