Unfortunately the Custom Permalinks function does not work with 3.2.1 as marked because it is using the deprecated function
has_cap(). Here is the error message that is displayed on activation:
Notice: has_cap was called with an argument that is deprecated since version 2.0! Usage of user levels by plugins and themes is deprecated. Use roles and capabilities instead. in /Users/mikeschinkel/Sites/wp32/public_html/wp-includes/functions.php on line 3466
Note that you may need to set
/wp-config.php to see these errors.