OhioCyclone

35 - 37 mm is on the larger side. I have been using 700x37 on my Surly ( stock on the complete bike from the factory) since I purchased it, and I will be using 37 again. Chris is right when he said it is a more comfortable ride. It also helps prevent damage to your wheel set, especially if you plan to rid eon some gnarly surfaces. I tend to ride in more of a touring fashion, and the surfaces range from smooth fresh pavement, to patchwork b roads, and even some gravel c roads. I am still debating wether I want to drop down to 32. The biggest benefit is less rolling resistance, and this is only really significant when going in and out of troughs--like maintaining speed transitioning from down hill to uphill again.

As for saddles, that is unfortunately the hardest thing to fine tune. I have gone with the brooks B-17 touring saddle. It is more of an upright position saddle, so if the drop difference from saddle to bar is more than 3-4 inches, you might make the boys a little angry. But it is wide enough in the back to fit the sit bones, and skinny enough in the front to not cause chafing of the legs. I had a bigger padded sit, and found that it actually hurt my sit bones after about 20+miles...the tough, painful looking, but oh so comfortable brooks leather saddle and padded shorts works wonders for me.