Log into your hosting account and take a look at your PHP settings. The 3.2.1 update requires PHP5 to run correctly. Depending on your hosting provider, your PHP settings were probably already updated automatically. But smaller providers like Cpanel and 1&1 may require you to upgrade them manually.
Shoot an email to your hosting provider to see if you’re running PHP4 or PHP5, or if you’re running PHP at all.