Windows 8 does support lower resolutions but touch apps wont work until you update your video drivers. I just tried this on my wife's netbook and here's how I got everything to work:
Install Windows 8 on the netbook
Download and install the GMA 1350 drivers from Intel (if you can provide the netbook model, I can confirm the 1350 drivers will work. I see 950 drivers available too for the N2xx atoms): http://downloadcenter.intel.com/
Open the Intel display settings (right click desktop) and set the resolution to 1024x768
Touch apps will work but things got a little ugly on the start menu so I set it back to 1024x600 and will switch back if I need to use a touch app.