The stability, transient dynamics, and physical interpretation of microstructures obtained from a Ginzburg-Landau theory of first-order phase transformations are studied. The Jacobi condition for stability fails numerically, thus an alternative exact stability criterion, based on critical (most destabilizing) fluctuations, is developed. The degree-of-stability parameter is introduced to quantify the physical stability of long-lived unstable microstructures. For nanofilms, the existence of functionally graded nanophases is demonstrated. Numerical simulations indicate that graded nanophases can be produced by dissolving material from both surfaces of a nanofilm. Stability under finite fluctuations and post-bifurcation microstructure evolution are investigated numerically.