lnxlrnr,
Your partition looks normal as hda1 to hda4 are the reserved primary partitions. In using logical partitions you gave up hda3 and converted it into an extended partition which is just the boundary for hda5 to hda8. As it happens you managed to put hda4 behind hda8 and use Partition type C which is Fat32 in LBA mode, allowing that DOs partition accessible in large hard disk. The reason that hda4 being created after hda8 is because hda4 was unused but a reserved primary partition. Have the same space been used for a logical partition it would have been hda9.
Coming back to your 1st question and answer is yes. You are doing something totally out of the ordinary by asking Windows to boot "another" system by switching on the booting flag of that partition. It is a very creafty move. You and I are possibly the only people who do such thing as I haven't come across it before myself and doubt if majority of the PC user understand the principle. To facilitate the booting process I would advice you to make a bootable Grub floppy (or burn a bootable Grub CD) and use it to do the switching whenever you don't want to boot up WIndows first to do the switching for you. In a Grub prompt, which you get from booting up a Grub floppy or CD it is a simple command to make hda4 active
Code:
root (hd0,3)
makeactive
Please notte Grub counts from 0 and so the 4th partition of the first disk hda4 is known to Grub as (hd0,3).
For methods of creating a bootable Grub floppy or CD please follow the Task A in the last link of my siganture.
On the second question you need to edit the /etc/X11/xorg.conf or its equivalent in RHEL to select another resolution. It is possible that you have to match the video driver and the scanning frequencies first before able to use the higher resolutions as Linux distros provide only the generic drivers. Start a new thread as users of RHEL can give you a better advice as my Red Hat is the free version 9. Instead of xorg the equivalent in the older distros may use X86Cinfig or something like that but it would still be in /etc/X11 subdirectory and the configuration file is essentially the same.