I'm trying to beta test it but it appears apple removed the 3.2 update from the developer website... how do I update my test devices to 3.2 to do this?
There is no OS 3.2 beta, because it has already been released officially. You don't need to update your iPad, it is already running OS 3.2 (the only available version).
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If you set the iPhone OS Deployment target to 3.1 or 3.0 and Base SDK to 3.2 in your project you should be able to run your Universal app on an iPhone/iTouch that has 3.1.3 or earlier OS installed.