Tires are not the issue. The Contact3's are a great tire. THey are alot like the PZeroRosso's I run on a few cars- a very simular tire in feel. The COntacts have a little more grip, but the Pirelli's are just a tad more responsive and predictable. Those Contacts do not in any way walk about or wander, so definately its in the suspension.
Lets look at what happens when you lower the rear of a w202. The five link suspension. The doniinant arms are the bottom control arm and the two diagonal forward links. As the suspension compresses, the bottom arm lengthens in geometry thus pushing the bottm out and giving a little neg camber. meanwhile the two (4-link type) forward ectentions will arch upward and pull the wheel forward. This is placing the knuckle forward and outward. Then the other two links- top camber link shortens pulling the top of the knuckle inward thus massive neg camber (hence the need for slightly longer aftermarket arms) and the toe link will tug the front of the knuckle inward making more positive toe position (toe in)...factory will most likely call for about 1/16" toe in, but this proabaly pulls it past 1/8" in which will make a car light in the rear. It kind of rides up on itself. A little toe will make it grip into corners, but too much can lead to high speed wander especially if you are experiencing a change in toe as one wheel hits a bump and the other doesn't. A rapid increase on one side will walk the rear towards the other direction.
The whole idea of suspension geometry, esppecially rear geometry is to try and keep all of the arms in sync so as not to push, pull or tug the rear knuckle in any direction that changes the tires path, If the knuckle moves off reference to the centerline of the vehicle in yaw, the tire does too. I am not familiar with the travel path of these cars suspension yet. I have yet to pull a spring out and put a gauge on the whel and bump it through travel to see just how it may change. I can assume the path of change, but I do not know how much change and in how effective this change comes with ljust how low a stance. I have see a few funny things so far - take SpeedBenz's car- I havee seen pics where he changed the lower forward links, and left the upper one stock- this takes rear caster out, or will put it in if you pull the wheel forward and shorten the wheelbase.(this comes at a cost of inducing toe-out- but if he went low enoguh he about averaged out the factory rear tierod spec- ultimately if this is what he did the final result pulled his wheel forward and slightly inward in his wheelwell.
5-links are very comples to try and get and imaginary picture- they make even my head hurt. I have to physically motion the assembly and measure as I do to see exactly what is changing.
http://public.fotki.com/m8o/kar_kraz.../dscn0018.html