The setup is the same: two envelopes, once with twice as much money as the other, you pick one and before you open you are offered to switch. If you do switch you might either win money or lose money relative to what was in the envelope you chose first. Let's compare the possible gain to the possible loss (without worrying about the probability of having a gain or a loss):
1. The possible gain is equal to the possible loss.
Proof: The two envelopes contain x and 2x, so you'd gain x if switching from x to 2x, and you'd lose x if switching from 2x to x. The possible gain and the possible loss are both equal to x.
2. The possible win is larger than the possible loss.
Proof: Say the envelope you chose first has y. Then the other envelope has either y/2 or 2y. So if you gain money by switching you gain 2y - y = y, but if you lose in the switch, you lose y - y/2 = y/2. Clearly y > y/2.
This version kept up at night for days when I first read it. I never figured it out --not that I had any chance of doing so, given that Smullyan couldn't figure it out either--, I just got used to not understanding it...