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When you use the shape tool in PS7 it does create a new layer but I wouldn't class that as being a bad thing at all - to change the fill colour for the shape you just created double click the little box on the left of the layer (in your layers pallete) this then brings up the colour picker, pick your colour and it fills the shape for you.
The one thing that really bugs me about the paths/shapes is the stupid line photoshop insists on putting around the path when you have the layer selected, i find it really off-putting
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