Windows 7, from the basic home edition to the advanced Ultimate edition, come in both 32 and 64 bit versions. A 64-bit PC can handle larger amounts of information than a 32-bit system. Since it can use more RAM—4 GB and up—a 64-bit computer can be more responsive when you’re running lots of programs at once.
Currently, most users like me will be running the 32 bit release because our computers have 4GB or less RAM installed. If you have a 64 bit CPU then you might only need to add more RAM to your computer to have at least 4GB or more.
If your first priority is having a PC that can take advantage of increased memory and new hardware or software, then lean towards a 64-bit PC. On the other hand, if cost is a key concern and you’re mostly interested in running programs that aren’t supported by a 64-bit PC, then a 32-bit PC is a good choice.
Your hardware mostly dictates what version you could install – if you have a 64 bit CPU and more than 4GB of RAM then you meet the minimum requirements. The driver support for your peripherals is another story though – make sure to check the specification for the video, sound and other auxiliary cards if they support Windows 7 64 bit.
The 64-bit versions use an emulation layer called WOW64 to run Win32-based applications, although, for best performance, Microsoft recommends using 32-bit software on 32-bit Windows systems. The emulation feature enables organizations to use their Itanium-based systems with existing Windows applications until they have the 64-bit versions.
Another important thing to remember is the support for 16 bit programs – in 64 bit Windows you will not be able to run them at all. Wow64 only supports 32 bit software. As a workaround, you can run this programs using VirtualPC running an older OS like XP or you can use the new XP Mode in Windows 7.
To summarize, if you don’t need to run legacy 16-bit software and you have the latest hardware and driver support is not an issue, then the 64 bit version is for you. The 64 bit version takes advantage of the 64 bit CPU capabilities. It can also utilize higher RAM capacity so you can achieve higher performance.
Ben Carigtan shows you how it’s done.



If you are interested in or already have Windows 7 then it is worth reading this very comprehensive post for just about everything to do with installation/customization/information/tips & more:
ninjarabbits.blogspot.com/2009/11/hopefully-very-comprehensive-guide-to.html