What Event ID is generated when a scheduled task fails in Windows Server 2003?

No, Scheduled Tasks in Server 2003 do not make use of the Event Log. They log to a text file, SchedLgU.txt under \Windows\Tasks\. The simplest way I've found to generate emails based on that log is with PowerShell.

Select-String "\* error" should be able to find any failures in the log, and after that, it's just a matter of triggering an email when that's found... and ironically, yes, it's probably easiest to run your script to scan for Scheduled Tasks failures as a Scheduled Task.