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Is ammo still available? Is there a market for this piece? If so what should I be asking for it?
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Yes, 7.65mm aka 7.65mm Browning is the .32 ACP in the USA.
Market? yes, but its no longer one of the popular .32s, smaller and lighter pistols are what is most in demand, but it is a Walther, so someone will want it.
How much? Depends on which PP it is. And, of course, condition. Pre WWII guns and Nazi marked guns have a different value to collectors than models made after WWII. Bare gun? Gun with original box and all paperwork? makes a difference in what people are willing to pay.