This is a quote from the web site rich weyand just posted. There's some really good stuff there, but this is something a lot of guys miss. Tire height ISN'T just from the ground up!
"To determine your tires true diameter in relation to determining what speedometer gears you need, measure from the ground up to the center of the axle then multiply by two. The actual run out of the tire can be as much as 2 to 3 inches less than what the circumference of the tire measures. In effect your tire has two diameters."