1.006: Is IBM "dropping" AIX? AIX 3 discontinued.

No.  IBM sells and supports AIX 4 (4.3).  However, on January 31, 1997
IBM will "withraw AIX 3.2.5 from marketing."  That is, you won't be able
to purchase AIX 3.2.5 anymore.  On December 31, 1997, IBM will
"discontinue Program Services" for AIX 3.2.5.  Translation: they will
no longer respond to (most) defect reports for AIX 3.2.5.

The US announcement letter can be read via <http://www1.ibmlink.ibm.com/>.  
Pick the US as region,  look for "Announcement Letters," then search
for document number 996-245.