My SRAM cassette is 11-32 and works fine with the old mech. The ratios aren't very good though, as the jump on the biggest two is from 28 to 32 which is far too big. I'd have been better off with 11-30 or 11-28.
the only proper way to go on a retro steed is 7s with 7s thumbies, spacer nicked from an old cassette, or even a dummy cog work fine. The 8th click thing is a bit marginal and temperamental