I've been using the fair scheduler for some time now in the 0.20.x version of Hadoop and never had any issues.
You can set the following property:
<property>
<name>mapred.jobtracker.taskScheduler</name>
<value>org.apache.hadoop.mapred.FairScheduler</value>
</property>
And you can then go to http://<jobtracker URL>/scheduler
More details on how to setup for example fair scheduler in MR1 here.