Continental does offer a product called biz first on selected domestic destinations. Although it is basically First class, it is a upgraded first class in my oppinion. I recently flew EWR-MCO-IAH and the entrie trip was biz first. SFO, LAX, CLE, and a few others get biz first planes. However, CO does not offer a 3 class service. As for the PHX-EWR red eye flight. I have taken this flight many times with CO and NW. Every single time the flight has been booked and over sold, so hope you get lucky and get a empty aircraft.
Eric
PHX/BDL