the Apple Java 6 has nothing to do with making CS3 work. it is necessary for the framework of legacy versions of Photoshop to be present in order to launch it, not support it. CS3 was depreciated years ago and Adobe had moved to 64 bit applications, just as Apple has moved on to 64 bit OS's.
While legacy versions of CS may run on newer OS there is a limit as to what you might expect if you do get them to launch without crashing and unfortunately InDesign and to a lesser extent Illustrator are the most effected by the progression of technology, Photoshop is the most stable of the bunch but if you are working Hi-Res that all goes out the windows.
What you can try is boot to an administrative account; remove all instances of CS3,
Uninstall Adobe Creative Suite 3 and Adobe Creative Suite 3 products
and any remaining components that were not removed by the removal process.
http://www.adobe.com/support/contact/cs3clean.html
make sure you are using the Apple Java 6as Oracle Java is for web apps only.
Reinstall the CS app, run in the admin account and see if works. Any issues you have will be inherent to what you are trying to do and you may consider an alterntivie if Adobes policies on software are not advantageous to you.