I haven't played for a while, BUT,
you know what I'm going to ask.
Can you post a .ODCL and a .LSP with the minimum content to show the issue.
added: If Owen needs to debug this it will save you time later.
A snapshot of the result in each case may help.
Is this for AutoCAD or BricsCAD
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I have a recollection that the last used size may be saved in the registry ... but that may be a scrambled recollection.
Resizing is another issue. Is the palette docked? ... That was an issue at one stage ( again, old and possibly scrambled recollection )
Added:
Have you considered posting at the OpenDCL forum ? You may be able to attract a broader base of regular users.