Should have no problems with the tire height - 185/65R14 are nearly the same height as the 205/40R17. Won't be bad for the car - just like riding around on the compact spare wheel - just don't expect the car to behave perfectly. Your braking and handling as well as ride quality will be "off" - best to get those bolts/nuts replaced ASAP.
As far as suspenstion noise - it reallly depends on the offset of the new wheels. If they are off the range spec'd by Toyota - you will have clearance issues. Looks around the wheel well and on the face of the tires - see if you see any rubber being rubbed off or making contact with the fender - check around the mudflaps.
With a 40 series tire - you'll have a ton of roise noise coming into the cabin - not much you can do about that, just what you trade for stiffer sidewalls. About a 16" is about as big as I'd go with a 8th generation Corolla (that is what I run currently) and have zero clearance issues. You can stuff a wheel as large as 18" under the fenders - but you will have to "roll" the fender lip to get proper clearance. 17" wheels are hit or miss - sometime you have to roll the fenders - others you will be OK. If you have dropped the suspension or lowered it any way - you will have to roll the fender lip.
Good Luck.