I think the "other" scale I had in mind when I asked if 1/32 is standard is the scale of the "toy" slot car sets made by TYCO and whoever else. You know those crazy sets with loops and jumps and track that goes up the side of the wall?

I always wanted one of those sets. Anyways, I think those are HO scale; a scale most common for model railroading. The ratio is 1/87. Where they got that number...
Also, I recall that there was a short lived slot-car store & track near my parents' house. They had three separate 1/32 layouts; the largest had six lanes, IIRC. You could bring your own car or rent one. I never had one, and I only remember being there once. Shoulda' paid more attention...