It is usually a good thing to upgrade your kernel but it is not mandatory.
Newest kernels bring better hardware support, updated drivers, speed and stability improvements, security fixes and new functions.
But may also cause problems on certain hardware, especially if it is relatively old.
You can install kernel 3.2.18 alongside 2.6.38 and choose which one to boot to during system startup.
Installation is easy: go to Synaptic and select to install kernel-3.2.18-pclos2.bfs (kernel-devel-3.2.18-pclos2.bfs will also be selected) or kernel-3.2.18.pclos2-pae.bfs if you have 4GB+ of RAM in your system.
On the next boot you can select to use the new kernel. Be patient the first time as it may take a little longer to boot (it is usual). Play around, see if everything is OK and then it's up to you to keep using it or go back to the old one. Of course, you can keep both, just in case something goes wrong...