It has been a while since the creation of the SPSlideShow web part, but I haven’t wrote the story behind it. At the time I was looking for a slide show web part, and I found few, even open source, but ALL of them were Flash or SilverLight based. SilverLight is good but not every enterprise got it installed, and Flash, well, I try to avoid Flash when I can, too many versions, with far too many unique problems (try using Flash 9.0.16 on IE6).
Anyhow I found this very good slide show JavaScript, and wrote a small wrapper web part around it (SPSlideShow). I think the end result is as good as good any Flash/SilverLight web parts, if not better.
p.s. use the forum for bug reports.
Tags: sharepoint, webpart, wss3

Is there a way to chsnge the size of the picture shown within the javascript? I tried editing several height/width settings, but none seemed to make a difference. Any ideas?
No idea. SPSlideShow image resize is done on the SharePoint, not the client side. You might try looking around on the web.
I also would like to know how to remove the margins between the slideshow and the actual thumbnail. It currently has a black background and shows on both sides of the image. How can we get rid of the black margins that show up on both sides?
You need to tweak tha java script that came with SPSlideShow, try looking in the forum, there are few people who done similar things.