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Are there any tools that support development and embedding of custom tags in JSPs?

Though there are tools available to build JSPs and embed the standard JSP tags, there are currently no tools available that allow you to build and embed custom tags in your JSP. The closest support to custom tags is the support provided by visual tools like Dreamweaver MX, which allows embedding of custom database tags in the JSP. These tags are part of the custom tag library provided by Macromedia's JRun application server.

Can I use third party tag libraries in my JSPs and deploy them in WebLogic Server?

Of course! WebLogic Server 7.0 provides full and complete support for the JSP 1.2 specification. This enables developers to add and use third-party custom tag libraries and deploy them in WebLogic Server.