I downloaded and installed Safari 3 Beta and installation went well. I couldn't test any further though, since proxy settings box is grayed out. I guess the beta doesn't work with proxies.
I'll have to test at home later.
Update: Not really sure what is up with the proxies. I came home, and safari wouldn't connect to the net. I started up Internet Explorer, and turned the proxy settings of, and safari began working. I'll have to try again once I am behind a web proxy and see if Safari on Windows is using Internet Explorers proxy settings.
The important thing to note might be that Safari on Windows now gives web developers the webkit engine on Windows which had been missing previously. Now you have all the major engines, IE engine, Gecko, Opera Engine and webkit/khtml on Windows. Not really sure if this is good, since it gives a web developer less reason to move of Windows!
More Updates: The browser seems to be using Internet Explorers proxy settings. However, when behind a web proxy that requires a username and password, the browser crashes after you enter the username and password. The dialog mentions keychain, perhaps it has something to do with keychains non-existence on windows.
Even More Updates: here