Best way to figure out the diameter of a tire is to measure its "rolling" diameter. Mark your tire on the closest point to the ground and that spot on the ground (so you have a line that runs through your tire and onto the ground). Drive in a straight line for 3 or 4 revoloutions. Stop when the mark on your tire is at the ground again. Measure the distance between your mark on the ground and the mark on your tire. Divide that by the rotations your tire took to get there. Then divide that answer by 3. 14 (pie).
So, for example: You made your marks, drove forward so the mark on your tire made 4 revoloutions, and measured 412 and 1/4" (412. 25) between the marks. The math should look like this: 412. 25 Divided by 4 = 103. 0625 divided by 3. 14 (pie) = 32. 82245222929936305. Your tire is 32. 82245222929936305 inches tall.
The more revouloutions you use the less error you will have. This is how I have always set the pinion factor (tire size and/or gear ratio settings) with the DRBIII, and it has worked perfect. It also factors in tire pressures or tire squat.
Kevin