The dithered backgrounds look dodgy, but in motion I think the 32x was smoother than the snes version. At any rate, the gameplay was what was most important, and that was definately better in the 32x one.
I read some forum post somewhere about the 32x port. I guess they were using only the genesis hardware for the backgrounds. You could disconnect the video output from the 32x, leave the genesis hooked up, and the game would play but only the backgrounds would be visable. Probably explains the lack of colors.
Another tidbit I remember stumbling across was some interview with Steve Snake where he mentioned working on some 32x games. He said one of those Acclaim games, either MK2 or Jam TE, pretty much maxed out what the 32x was capable of. Thats just sad...