I have a created a 3D model in Sketchup and exported it as a KMZ file, which I have then opened in Google Earth. When orbiting the model on certain orientations the model jumps 2-3 storeys in the Z-axis from its correct location.
I have changed the altitude settings (Clamped to ground,Relative to ground etc) and the same issues still occurs.
I had no problem when orbiting your model, it looks quite fine.
Just two things seemed odd to me:
1- Your ‘scene’ is quite far away from your model (or your model is far away from origin in your SketchUp). Try to make your model closer to the origin (or create a scene near your model)
2- Seems like you exported with hidden geometry on. Try unchecking that tick box when exporting. (or make sure your model is clean and there are no stray edges etc.)
Try those and see if that helps when orbiting in Google Earth.
Google Earth uses Level of Detail (LOD) techniques for performance in order to display only as much and as accurate as needed from your view point. Far away terrain is rough, and would step by step become more precise when you move to it.
Exported SketchUp models are at their origin vertically positioned relative to the Google Earth ground. Now if your origin is far away from your model, it will be somewhere at the horizon in Google Earth, where the ground is inaccurate.
As filibis said, fix your origin to be close at the model. Their is no easy way to move geo-location other than Clear Location and then Add Location again.
An alternative could be to set your model in Google Earth model properties (right-click) to an absolute altitude.