[development] php and js in a programmatic block

Nothing confuses me faster than mixing php and js (and especially escaping the quotes). In this case, my confusion is the concept and not the gobblygook. I have a module invoking hook_block, and a function that creates and returns the block content. In this function I invoke drupal_add_js to gather the contents of ./mymodule.js So far so good. However, the js needs to be dynamic...there are two function values that need to be embedded in it. I'm thinking that with this being the case, drupal_add_js might not be the way to go (back to escaping quotes), but wanted to poll first for best practice, since I'll be contributing this module. Thanks, Jeff