A - You can edit the template: island_shoutbox.tpl in these lines:
<div id="shout_box" style="height:300px; width: 100%; overflow:auto;">
<div id="shout_content" style="height: 336px;">
You'd edit the "300px" and "336px" numbers. Be sure you keep a backup and keep the px part at the end.
B - This would need to be a modification. Might be better to ask at ubbdev.com
