As I mentioned earlier, the list editor should get its height/width from the columns/rows attributes of the list column definition. I think this feature was included only in the latest editor for MOSS release (4.40 or 4.41). This explains why you see the difference between the development and production environments. When you add a column of type "Multiple lines of text" to a list, you can enter the number of lines for editing. This value is used by the editor and it seems to be overriding the Height setting you have in the ListConfigFile.xml. Unfortunately, I don't think that there is a way to modify the number of lines value for an existing column. The list settings allow only to change the column name and not its type.
All the best,
the Telerik team