Does EE 1.7 have a setting where I can have an arthor and editor? I would like to set roles where an author submits a blog post and an editor gets an email confirmation to edit and publish. Is that possible or is there a plugin I can utilize?
Using the native member group settings, you can definitely create these two groups and set their permissions accordingly. I strongly recommend downloading the EE 1.7 docs in the top right corner of the EE online User Guide.
Control Panel Location: Admin > Members and Groups > Member Groups
Once you create the member groups, edit their permission related to the current weblogs.
There's a section called "Control Panel Administrative Privileges" with a subsection of "Can administrate weblogs and weblog preferences".
That should get you going.