I can't answer any questions on oil, but as for tires, I bought a set of Kumho Ecstas for my '95. They absoulutely kick !Removed! in the snow and rain compared to the Potenzas or Eagles that I had before this, they track well, and they are quiet. Also, they are relatively inexpensive. They are a little less sporty tire, but then the LS is a little less sporty of a car.
As for problem areas, check out the forums. Check out any information on the front end maint. and the engine dies/jerking thread for '95/'96s (you may want to replace your ECM). Overall, the best used cars on the road for the money, in my opinion. I have been driving my wife's Passat all week, and I just jumped in my '95 LS to park it in the garage tonight. "Damn", I said to myself, "this is a nice car!"