customize

Hello,
I have 2 question:
1. does CKEditor 3 is free to use?
2. I add this code to my PHP site:

<?PHP
echo "<form method='post' action='1.php'>";
include "ckeditor/ckeditor.php";
$CKEditor = new CKEditor();
$CKEditor->editor("editor1", "<p>Initial value.</p>");
echo "<input type='submit'>";
echo "</form>";

?>

its working fine, but than I tried to customize it - I wanted to limited the size of the editor and allow to upload images, so I add this code:

<?PHP
echo "<form method='post' action='1.php'>";
include "ckeditor/ckeditor.php";
$CKEditor = new CKEditor();
$CKEditor->editor("editor1", "<p>Initial value.</p>");

$CKEditor-> CKEDITOR.replace( 'editor1',
    {
       $CKEditor->filebrowserBrowseUrl : '/browser/browse.php',
       $CKEditor-> filebrowserUploadUrl : '/uploader/upload.php',
       $CKEditor-> filebrowserWindowWidth : '640',
       $CKEditor-> filebrowserWindowHeight : '480'
    });

echo "<input type='submit'>";
echo "</form>";

?>

and as you probably guess - it didn't work (" Parse error: syntax error, unexpected '{' in C:\Program Files\wamp\www\mytest\1.php on line 14").
why?
ant also - where do I define the path/folder for images to be store/uploaded?

Thank you in advanced!