The short answer is "No, because the ARM CPU in the Webpal is way too different from an Intel".
The long answer is "You might be able to get the x86 emulator running under Linux on the Webpal, which might (but very likely wouldn't) run Windoze at a snail's pace. But then you'd be even crazier than we are ".
If you really want to run Win3.x on a compact box, you can probably find an old notebook system for about the same price as a Webpal+HD (especially if you go for one that has a dead, expensive-to-replace battery). But hacking the Webpal is a different flavor of "fun".