Actually while grossly underpowered the HD 3200 does meet the minimum GPU for Vista, 7, 8 and Windows 10
The AMD ATI Radeon (Mobility) HD 3200 is an onboard (shared Memory) graphics chip (on the RS780M chipset). It is based on the HD 2400 graphics core and features the UVD video engine to decode HD videos (Avivo HD).
Its also DX10 so its slightly better than my x1200 on my old Toshiba
Actually it doesn't meet the requirements for Windows 8.1 (WDDM 1.3)...which is what the poster wanted to know. Also, Windows 8.1 and possibly Windows 10 (in its FINAL form) will never have full functionality using these below spec cards even if you Micky Mouse them to work.
So what are the minimum graphics specifications for Windows 8.1 over 8? All I can find is a DX9 compatible card is required, which means technically any Radeon card from the 9500 and up should fall under specs.
The only issue here that I see is that AMD didn't (feel the necessity to?) provide drivers for Windows 8.1 specifically for the HD4xxx series and lower.
Windows 8.1 (and 8.0 as well, though it was not enforced) requires WDDM 1.2 capable cards, which is the HD 5000 series and later.
Actually Windows 8 and up can work fine with a WDDM 1.0 driver, the WDDM 1.1 and 2.0 revisions are proper supersets
All it means is that the older WDDM 1.0 driver can be used for basic DXGI functionality
Also, Windows 8.1 and possibly Windows 10 (in its FINAL form) will never have full functionality using these below spec cards even if you Micky Mouse them to work.
""will never have full functionality""
Especially not with DirectX 12 and Windows 10 requiring WDDM 2.0 capability.
- DXGI 1.1, which features return of hardware 2D acceleration for use by GDI (but not GDI+) and Direct2D/DirectWrite
- Direct3D 11 device driver interface (DDI)
- DXVA-HD DDI
- Hardware video overlay DDI
- Optional AES 128 encryption
- Optional decoding of encrypted video content
- Support multiple drivers in a multi-adapter and multi-monitor setup
Hardware acceleration of GDI and Direct2D/DirectWrite operations helps reduce memory footprint in Windows 7, because DWM compositing engine no longer needs to keep a system memory copy of all surfaces used by GDI/GDI+, as in Windows Vista.
DXGI 1.1, Direct3D 11, Direct2D, and DirectWrite were made available with Windows Vista Platform Update; however GDI/GDI+ in Vista continues to rely on software rendering and the Desktop Window Manager continues to use Direct3D 9Ex.
WDDM 1.1 drivers are backward compatible with WDDM 1.0 specification; both 1.0 and 1.1 drivers can be used in Windows Vista with or without the Platform Update.
Windows 8 includes WDDM 1.2 and DXGI 1.2. New features were first previewed at the Windows BUILD 2011 conference and include performance improvements as well as support for stereoscopic 3D rendering and video playback.
Other major features include preemptive multitasking with finer granularity (DMA buffer, primitive, triangle, pixel, or instruction-level), reduced memory footprint, improved resource sharing, and faster timeout detection and recovery. 16-bit color surface formats (565, 5551, 4444) are mandatory in Windows 8, and Direct3D 11 Video supports YUV 4:4:4/4:2:2/4:2:0/4:1:1 video formats with 8, 10, and 16-bit precision, as well as 4 and 8-bit palettized formats.
WDDM 1.0/1.1 only allows rudimentary task scheduling using "batch queue" granularity; improvements to multitasking, as well as fast context switching and support for virtual memory, were initially expected in versions tentatively named WDDM 2.0 and WDDM 2.1, which were announced at WinHEC 2006.
Windows 8.1 includes WDDM 1.3 and DXGI 1.3. New additions include the ability to trim DXGI adapter memory usage, multi-plane overlays, overlapping swap chains and swap chain scaling, select backbuffer subregion for swap chain and lower-latency swap chain presentation. Driver feature additions include wireless displays (Miracast), YUV format ranges, cross-adapter resources and GPU engine enumeration capabilities.
Windows 10 includes WDDM 2.0, which is designed to dramatically reduce workload on the kernel-mode driver for GPUs that support virtual memory addressing, to allow multithreading parallelism in the user-mode driver and result in lower CPU utilization. WDDM 2.0 will ship with Windows 10. 
Direct3D 12 API, announced at Build 2014, will require WDDM 2.0. The new API will do away with automatic resource-management and pipeline-management tasks and allow developers to take full low-level control of adapter memory and rendering states.
I have Windows 10 on my old Toshiba with the x1200 and the machine works fine. Things like app animations run as expected, I am not expecting to run Crysis.
The machine is too old to have Miracast but my HP Stream 7 tablet does support that because the SoC has more logic than the old Vista notebook.
AMD does not remove legacy drivers when installing updates, NVIDIA does do that. I own lots of video cards and I have been identify who does what.
So I can use the latest driver, however there is no functionality that catalyst can take advantage of,
Cleartype does work with the old Toshiba so that means my word processor should look fine which what that machine will be using. I use Microsoft Office and that is the main package on the machine. Office runs fine. I have tried all of the components.
So my old notebook with its DX9 GPU does run Windows 10, albeit with very basic capability. Its able to run DVD films with PowerDVD when tested. The screen resolution is too limited for blueray. An external panel however could be used. The machine I have uses VGA but some versions did come with HDMI, depending on the way it was ordered.
Official Windows 8.1 requirement is a DirectX 9.0 capable graphics card with a WDDM 1.0 driver. For some features like Miracast a WDDM 1.3 driver is apparently necessary, but in theory any DX9 card should work. Sure we all know a DX9 or DX10(.1) card doesn't have full DX11 support, unless you can specify what 'will never have full functionality' means. What functionality is missing here then?
And yes in reallife there are no DX9 graphic card drivers for Win 8.1 (neither AMD for Radeon 9500-X19xx series as well as nVidia for their Geforce 6 and 7 series (not to be confused with the 6xx and 7xx Kepler cards naturally)).
But then again, why shouldn't DX10(.1) cards be insufficient for Win 8.1? What features are missing for the competition's GeForce 8, 9 and 200 series for their Win 8.1 drivers?
EDIT2: Thanks for the link, kingfish. Now only remains: what does an average user miss from having only WDDM 1.1 support vs WDDM 1.2/1.3? Does 'preemptive multitasking with finer granularity' make a lot of difference over 'batch queue granularity'?|
EDIT: Don't get me wrong I perfectly understand that AMD didn't feel like it was useful to extend support for the X1xxx series to Win 8.1, since they're a bit old now. But I think it's debatable wether or not it's necessary to support a card like the 4870(X2), which is still able to offer a somewhat decent performance. Or is it more that there are currently too few HD2xxx,3xxx,4xxx owners vs GF 8xxx, 9xxx, 2xx owners?
EDIT3: And yes I'm aware this discussion has been around ever since Win 8 was released and AMD announced to drop support for the 4xxx cards for it.
Seek Catalyst 9.2 which should have the driver you want. You may need try 10.2 as well. Then after you have the core driver installed, install the Omega driver to update the CCC which will update other components and eliminate error messages