I ran some D1s with S brakes and Kelly Springfield KR-5 tyres -3/-1.25 camber and they were ok. My GF at the time put them on her City-E and they bound the rear shocks. 5mm spacers needed.
They didn't stick out ridiculously. Another 5" wheel which works without arches is the Compomotive one.....12 spoke??? They look OK.
Original D1's are all the same, they will go on an S set up though (and certainly did in period) but as has been said with 165's they are a little sticky outy....didn't stop me though and they did look lovely....
My 'ol MEG also had them on (for forty years !) with 145 Michelins, still marginal but I'd say do it !
When you say spacers do you mean seperate spacers or do you have the brake drums with the spacer.?
If you do have seperate spacers what thickness are they?
I didn't have spacers on the rear of my Traveller with the Yoko A008 tyres, but the tyres were very close to the shocks. I had standard type shocks at the time. I guess with some brands the shock could be a larger diameter, so a 5mm (1/4") spacer on the drum would sort any clearance problems.
