Most insurance companies want 350mm across for a steering wheel. Thats about as small as i'd be willing to go especially on non-power steering cars.
By how much do you want to "Lower your car"? Don't cut the springs, that is a bad suggestion, and it won't be comfy. At the very least at my poorest, I was able to save up and buy a new set of springs for my car. I'm sure you can do the same. If they're 200b struts you can probably pick up a set of front and rear lowered springs for any strut that will fit for under $100 a pair for second hand. Or $200 a pair new. Unless you want look and not performance, then you might as well cut a coil off and see how you go. Remember, the less coils the harder it will be, and the changes to wheel angles and roll centres etc will change also.
Heavy steering. Check tire pressures as stated. Check that there is fluid in the steering box and that steering isn't overly tight on ball joints etc. Next is have an alignment and make sure that the wheels don't have huge amounts of castor, as that will cause the steering to become slightly heavier too.
Brake light... Check the switch, make sure its not clicking on and off. Sounds more like an earth problem though. Start tracing the wiring back.
Good luck.
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Ongoing Project: 1972 Datsun 510 S13 SR20Det.
http://ozdat.com/forum/viewtopic.php?f=33&t=17898
New Daily: D22 Navara (The new workhorse)
Retired 12/2016: MY98 Subaru Impreza RX
Previous Car: Restored Green 1972 Datsun 510, Hot L18