I'm certainly not a wheel expert, but that looks a bit scarey to me.
The whole point of the 17 is harder use, correct? Harder cornering and braking loads. Given that I would stay far away from any form of radial lacing.
It may be that the rim and hub are just not compatible. I'd take it to a wheel expert to see what can be done (redrilling rim etc). The wheel guys always seem to have a few tricks.