Hi CHCG
Have you tried editing the height in the modules section?
There is an option under Module Parameters called “Slide height” which you can mess around with to make the slide show bigger and smaller both heigh and width wise.
However, I think some pictures will not align properly unless they are the correct size either. It would be like stretching a square into a rectangle (if you know what I mean). One side would stretch and meet while the other wouldn’t even be close to to meeting the other – placing the shop in an awkward position!
When you said “align the height” I thought you meant have both the top of the slide show and the newsflash module meet horizontally – but it looks like it’s already done to me.