I cannot reproduce this, see screenshots here: https://www.zenphoto.org/test/
Since you are using a modified Basic theme try the original one from 1.5.7 just to be sure this is not an issue of your modification perhaps based on an old version.
I just tried on our own server's demo instal just to be sure that the local one does not behave differently: Here with 595px and height:
https://demo.zenphoto.org/test/dublin_s.jpg.html
(you might need to switch to the Basic theme on the top left if not enabled for you). Works as well as you can see.
I have run it on the pano image:
http://leitseite.net/debug.log
For the actual image parameter regaring class methods/functions that is correct. Default images/thumbs only use the $size parameter as all else depends on the "side" options. Internally it is then calculated accordingly. You see height and width values on the later entries in that log. It looks to me as it should…
What setting do you have on http://leitseite.net/photo/galleries/index481b.html?album=panorama&image=dublin_s.jpg right now? That is excatly what I get with shorest side/height setting for this image.
What does this mean in the source of your site?
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So this is a static version of the page, right?