I would like to use microtype with the latex, dvips, ps2pdf workflow. Is it possible to use it in this workflow? If it can be used are there any options that I need to call when using microtype?
Yes, you can have some
microtype features with DVI output. Namely, if you are using the
luatex engine to produce DVI output, you can have protrusion (margin correction), even by default. Knuth's old
tex engine won't work.
As Table 1 in the microtype manual tells us, you could even use font expansion with DVI and the aforementioned engines, but this requires to have the shrinked/expanded fonts already in place, they won't be generated for you. So unless you know exactly what you are doing, this is not for you, hence font expansion is disabled by default for DVI output.
Finally, no extra microtype option is needed for DVI output. There is the
DVIoutput when loading the package, but this just forces DVI output on the pdftex engine. It is not needed when you already request DVI output via
TL;DR You can have protrusion for DVI, which is great, but no other of the (many) cool features.