(1. Does the SetTeamAggressiveness line in the lua do anything?
(2. Is there a way of deleting fall damage? I looked in jettrooper odfs and they didn't help.

1) Yes, depending on the values, it changes the agressiveness of the AI for the set team (hence SetTeamAgressiveness).
2) Search is your friend.

Does that mean it does do anything? I put it at 20 and the AI were still really dumb....

Yes, we know. The AI in SWBFII are not very intelligent and adding in a random parameter won't change that. If the AI do absolutely nothing, there's probably something wrong with your objective set-up.

just in case u cant find it here add this line
CollisionScale = "0.0 0.0 0.0" // don't take damage from collisions

You can also try playing around with these settings (From Fred's site)
AI Difficulty