The Romanian SAR series comes in three variations:
SAR-1=7.62x39
SAR-2=5.45x39
SAR-3=5.56x45
So the answer is
1)Yes, the SAR-3 really is a 5.56mm
2)Yes, the AK-74 is the one that shoots 5.45mm
3)They are reliable. They are an AK after all. .223 AKs are not a new idea. I own a Norinco .223, and it's my favorite AK. While not "authentic" because the Soviet Union never built it that way, it still makes great sense and works fantastic. Other .223 AKs include the Galil, the Valmet, Polytech, and a few other odd-balls. The Daewoo K2 uses the AK gas system, though the forged alloy construction of the AR.
Mags for the .223 are quite available. I believe the Bulgarian waffle mags work, and there are modified AK-74 mags that work. AK-74 mags go for $5 for a 30rd mag. My Norinco mags are about a buck a round ($15 for a 15rd/$30 for a 30rd). I ahven't tried any of the cheap mags in my Norinco yet, but I'm going to give it a shot to find out.
Oh yeah, the .223 AKs love that cheap steel case Russian ammo as well. They were made to use that kinda stuff.
Ross