They can be surprisingly accurate little guns, when fired single-action. The Russians used them in international target competition.
Fiocchi sells wadcutter target ammo that's specifically intended for punching holes in paper, and I've bought some Russian target stuff in yellow boxes that also works well, but is dirty to shoot (you can see a puff of smoke when you pull the trigger).
I've had good luck shooting .32 S&W Long, too, although mine will occasionally spit a little lead sideways using it. And I've heard of people using .32 H&R Magnum.