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Access to the Polygon Feature Class from Lines command is different in ArcCatalog 10 than in ArcCatalog 9.3. In ArcCatalog 9.3, the command is accessed by right-clicking a feature dataset then pointing to New, which gives the user this option. In ArcCatalog 10, the user must first add this tool to the toolbar, then select a feature dataset and click the command.
A more popular tool, Feature to Polygon, is only available with an ArcInfo license, but Polygon Feature Class from Lines is available with both ArcInfo and ArcEditor licenses, which makes it a viable workaround for ArcEditor users.