configuration for 3700 Router :

this command will enable your router to act as frame relay switch :
Router(config)#frame-relay switching
now we will need to configure each interface and build each PVC
Router(config)#int ser 0/0
Router(config-if)#no ip address
Router(config-if)#encapsulation frame-relay
Router(config-if)#clock rate 64000
Router(config-if)#frame-relay intf-type dce
Router(config-if)#frame-relay route 200 interface serial 0/1 100
Router(config-if)#no sh
notice that i said to my interface s0/0 , use DLCI 200 which belong to R1 attached to you (on serial interface 0/0 )
to connect to remote DLCI 100
also notice that your FR switch will act as DCE and your normal routers R2&R3 will act as DTE devices
Router(config-if)#int ser 0/1
Router(config-if)#no ip address
Router(config-if)#encapsulation frame-relay
Router(config-if)#clock rate 64000
Router(config-if)#frame-relay intf-type dce
Router(config-if)#frame-relay route 100 interface serial 0/0 200
Router(config-if)#no sh
Router(config-if)#exit
Router(config)#hostname sw1
sw1(config)#
configuration for R2
Router(config)#int serial 0/0
Router(config-if)#encapsulation frame-relay
Router(config-if)#ip address 10.0.0.1 255.0.0.0
Router(config-if)#no sh
configuration for R3
Router(config)#int serial 0/0
Router(config-if)#encapsulation frame-relay
Router(config-if)#ip address 10.0.0.2 255.0.0.0
Router(config-if)#no sh
do not forget to check your Frame Realy Switch with following command:
sw1#show frame-relay route
Input Intf
Input Dlci
Output Intf
Serial0/0
200
Serial0/1
Serial0/1
100
Serial0/0

Output Dlci Status

100
active
200
active

as you can see under status teh word (active) mean that everything is ok and we have layer two connectivity
btween R2 and R3