No, to create an ext3 filesystem you just run "mke2fs -j" this will create
the filesystem with an ext3 journal. If the -J option is not specified, the default journal parameters will be used to create an appropriately sized journal (given the size of the filesystem)
stored within the filesystem. Note that you must be using a kernel which has ext3 support in order to actually make use of the journal.

Read the manpage for mke2fs. This option is probably not available if your running Redhat 7.1 or later , but I'm not sure about that. I do know that the option is available in the version of mke2fs on my 7.2 system.

Nope not that I know of. It'll probably be in a kernel upgrade though. If you have to format a new partition int ext3, though, I suppose you could boot from the 7.2 cd and run the installer till you get to the partition tool and partition it to ext3 that way, but I never tried. I will check to see if there is a ext3 tool out there.