Brenda,
I don't use formsets but the Formset.Init() should be the method that gets the parameters. The outermost container object you are instantiating always gets the parameters.
>Is passing parameters to a form in a formset different than to a form without a formset? Where should my "parameters" statement be placed? It seems by the runtime error I am getting, it should be in the formset.load. This seems very peculiar.