The rims are from a Lincoln Town Car! They look fine on the Mercury though. These are great running and driving cars! Great find! The mileage should be visible, it's not digital.
The suspension may feel the way it does because it needs work somewhere. Or its actually ok, but it's just not to your liking. There's so much that can be done with that engine. Done right, it will still feel like it belongs in a luxury car, but have far more of it. You could possibly build it up to around 400hp without a supercharger, or at least 300+.