You should check the sticky in the "FAQ and DIY" section:
http://www.audizine.com/forum/showthread.php?t=28941
The majority of people whom run Bilstein shocks usually run H&R springs. Just a preferance thing. But I know that MJM has the package deals, w/Neuspeed as thier options. The Sport springs should grant maybe a 2-3 finger gap while the Race springs should grant a close to flush look with the fender and wheels/tires (1 gap). I would not really count on the tires tucking behind the fender (that is more of a look that needs to be accomplished by coilovers).
You must also consider that if you go the race spring option, you will learn of new issues to be cautious of such as hitting your belly pan on the concrete (many people crack thier belly pans due to lowering springs) and not being able to raise your vehicle in the winter. You profile says you live in Chicago, and the winters there can be harsh. With race springs, you are basically using your vehicle as a bull-dozer instead of riding over it and letting Quattro go to work.
And besides look, there is the ride quality. Race springs will be more stiffer, but people preferr that. The sport springs will be softer, and once again there are others whom preferr those. It is basically a preferance thing for looks, ride quality, pros, and cons. This is why many just save up for coilovers to avoid these decidions, as you can change the height as you want.
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