Has anyone discovered work arounds for the compatibility issues between ADE and Windows 8?

I am not sure what the compatibility issue you mention is.

ADE 1..7.2 works find, and ADE 2.0.1 works as well on my Windows 8.1 (32 bit) as it does anywhere (though is still riddled with bugs).

Try 1.7.2

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There are lots of bugs in ADE2.0 (and 2.0.1).  Try replacing ADE2.0 with the older but more reliable v1.7.2.

(You can have them both installed at once if you like.)

Version 1.7.2, it is a little difficult to find, available on Adobe site for Windows and for Mac.

http://helpx.adobe.com/digital-editions/kb/cant-install-digital-editions.html

The forum software is sometimes corrupting the link above.  There shouldn't be a blank in 'editio ns.html'.  The following redirects to the same page: http://tinyurl.com/diged172

Some people have found ADE trying to upgrade automatically. 

It appears (not 100% sure) that if you install ADE2.0 as a new install (not as an upgrade) that your 1.7.2 will continue to run.

Probably best to say no if 2.0.x installation asks if you want to migrate your library.