When using a shortcut action to launch a program, the manual says:
If the custom program requires
additional startup arguments, in the
Program arguments (optional) field,
type the startup arguments for your
program.
Unfortunately, this input field is missing from the current version of the program. The workaround would be to use a .BAT wrapper, but this doesn't work, either: you get "Windows cannot find 'C:/Windows/System32/foo.bat'..." in a popup.
This effectively cripples the shortcut action feature.
Later edit: I got the workaround to work by moving foo.bat to the desktop