Most stuff I've tried RUNS on it. Just very little is OPTIMIZED for it. 32-bit apps behave about the same as they do on regular 32-bit XP. The benchmarks say it's slightly slower than 32-bit XP for 32-bit apps, but, honestly, I don't think it's enough to be visible to humans. If you have the 64-bit proc, you might as well run the 64-bit OS for it.
The only problems arise when there's no x64 driver for some hardware you may have (haven't had this problem, personally, it usually arises when you use legacy hardware) and when you want to use things like Directory Opus in explorer replacement mode, it has quite a few issues, since it's 32 bit.