Do electrum fully support Hierarchical Deterministic Wallets? I'm curious if electrum fully support Hierarchical Deterministic Wallets (BIP32). I have seen in source code that some part of implementation is done. But there are also as I think some electrum specific algorithms.

So when I create new wallet in electrum will it be BIP32 compatible?
BIP32 support is planned for Electrum version 2.0. The code is already there, but disabled.

You can find some features that were first planned for 2.0, but were included in a 1.9.8 release as the servers were being updated to a new important version so it was needed to apply some changes already to the client to put all in place for 2.0 https://bitcointalk.org/index.php?topic=518133.0