PIC:how can we operate PIC24FJ256GB106 controller to 32MHz internal frequency

The datasheet is correct, as they usually are. The PIC 24F family can run at a maximum instruction cycle rate of 16 MHz, which can be expressed as 16 MIPS (Million Instructions per Second). This processor requires 2x clock over the instruction rate, so the maximum clock is 32 MHz. You can achieve 32 MHz clock with a 8 MHz crystal and the 4x PLL. That will result in 16 MHz instruction clock.

If you are using the simulator, you must comment out those two tests for the oscillator running or being stable. Since you don't have any hardware running, the tests will always fail. They should be OK if you use a debugger like the PICkit 2/3 or ICD 3.