the passing of values for height and width for the swf-files works both in the oacs-5-3 version and in the version in cvs-head.
There must be something else wrong. concerning the error message with height: are you sure, you have no "invisible markup" (such as spans etc. introduced via cut&paste) around the "-height"?
concerning setting the value:
the line, you are highlighting is the line setting the default values. the line below this (not cited) sets the provided values.
the height is passed to "new SWFObject(...,$height,...)". You should check the generated HTML source, whether it is inserted correctly at that place. btw, not every swf file honors the width and height parameters.
hope this helps.