I added the following to my functions.php file:
set_post_thumbnail_size( 500, 500);
I enabled featured image (support => 'thumbnail') in a custom post type a created (called Page Content).
When I set an image as featured image (the image I'm using has 500px of height) , the image is always rendered with 198px of height.
EDIT:
It renders 198px in final page and 117px in the admin panel.
This is the code of the final output:
<img class="attachment-post-thumbnail wp-post-image" width="448" height="198" title="2974999772_7085da4d34" alt="2974999772_7085da4d34" src="http://localhost/wp-alex-chen/wp-content/uploads/2011/01/2974999772_7085da4d344-448x198.jpg
This is the code of the featured image in the admin panel:
<img width="266" height="117" title="2974999772_7085da4d34" alt="2974999772_7085da4d34" class="attachment-post-thumbnail" src="http://localhost/wp-alex-chen/wp-content/uploads/2011/01/2974999772_7085da4d344-448x198.jpg">
Edit Post panel:

Any suggestions to solve this? (the 'normal' Posts have also the same problem (height= 198px)
EDIT2: I aded this to functions.php:
if ( function_exists( 'add_image_size' ) ) add_theme_support( 'post-thumbnails' );
if ( function_exists( 'add_image_size' ) ) {
add_image_size( 'thumb-1', 320, 280, true );
}
It is set to have hard-crop but the image is rendered as 250px 280px (it should render as 320px x 280px).
add_image_size( 'thumb-1', 320, 280, true );– janoChen Jan 31 '11 at 12:48