The W3C site lists HTML 3.2 under HTML 4.0 in the previous versions section. This indicates that it is no longer considered to be a current version of HTML for development (ie. it is deprecated).
Current HTML versions listed are:XHTML 1.0, XHTML Basic, XHTML 1.1, and HTML 4.01
And previous version are:
First released as a W3C Recommendation on 18 December 1997. A second release was issued on 24 April 1998 with changes limited to editorial corrections. This specification has now been superseded by HTML 4.01.
W3C's first Recommendation for HTML which represented the consensus on HTML features for 1996. HTML 3.2 added widely-deployed features such as tables, applets, text-flow around images, superscripts and subscripts, while providing backwards compatibility with the existing HTML 2.0 Standard.
HTML 2.0 (RFC 1866) was developed by the IETF's HTML Working Group, which closed in 1996. It set the standard for core HTML features based upon current practice in 1994. Note that with the release of RFC 2854, RFC 1866 has been obsoleted and its current status is HISTORIC.
Note that none are, strictly speaking, depricated. However, HTML 4.0 has been "superseded" and HTML 2.0 is "obsolete" and "historic". But there is no indication that we ought not to be using 3.2 - not from the W3C that is. I'll stand firmly for the primacy of HTML 4.01 Strict and anybody who says anything otherwise is itching for a fight.