I got to agree with Larz, I think you should at least using a 12 1/2" wheel. I'd probably go 16".
One of the guys that I ride with tried an eight inch wheel and didn't like it. He tried a regular 12 1/2" wheel and found it much better. We gave him one of those 12 1/2"scooter wheels, the kind that looks like a mag wheel, and he loves it!
As far as putting the bottom bracket in the front or rear. I think the "behind" version looks better but then it may force you to ride higher or back farther. Jacking the seat up may not be a bad thing but having to move the seat back will probably flip the bike or at least make it very light in the front. I guess it all depends on how low you plan on mounting the bottom bracket.
The bike has a nice look.
Good Luck.