Yup. But, you better have a decent video card for it to be smooth. Actually anything newer than a GF FX5200 and an ATI Radeon 9600 Pro. It doesn't have to be faster than those cards, just newer. Even Intel's GMA 900 is ok.
Aero is quite speedy in my X800XL which is now considered old.
Other apps/games that seems to work fine:
ScummVM:
DOSBox:
and
Project 64:
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It looks like Vista RC1 Build 5728 is out (32-bit only). Downloading as I type this.
Deleted Build 5600 and installing Build 5728 as I type on the old P3-733.