I have just returned from Morocco - 2nd trip(sat night) and I would definitely NOT venture into the southern desert in anything unless it can cope with the high temps and so on. You too must be aware that although the temp 3 weeks ago was only 39 deg C max by day, heat exhaustion in a non air conditioned vehicle is never far away. My girlfriend passed out from it an the foyer of the Ksar Sania auberge at Merzouga (Brilliant by the way, and French run), and I was teetering after looking for fossils near Foum Zguid - we made a rapid exit back to tarmac. I should add that I have done 5000km around Algeria withouit probs - it seems to be standing around around in the sun as opposed to moving fast and getting the breeze that does the damage to your core temperature.
Stay away from the desert proper but you could profitably do a circuit of the dunes at Merzouga where it's hard to get lost - this would give you a feel of what desert driving proper is like without the risk, though budget 7 litres per person per day of water, excluding cooking/washing, and teake a cellphone. Cellphone coverage is good around towns only, in general.
There's tons to see on any road or track particularly in the High or Anti Atlas where it should be cooler and quieter, traffic wise in august.
Tyres - stick with All terrains, mud terrains are not ideal although if new you'll probably have no probs. The locals use Goodyear Hi-Milers, difficult to get here, so the best option is probably BFG A/T, a good tough tyre.
Email me if you want any more help. Andrew.
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