I've used the PPU 7.65 Br and it shot just fine in my mouse collection.
By Herter's, do you mean old Herter's or new Herter's? Up until a year or so ago, the brass cased Herter's was made by S&B. Now it is made by Winchester.
For European pistols, feed them European 7.65 Br instead of US .32 Auto. There are small difference in the dimensions of the rim and extractor groove.