32 bit can access a maximum of approximately: 4GB minus the amount of video memory, assuming your computer has that amount of memory of course. 64 bit can access as much memory as you've physically got. There are lots of little issues (such as driver availability) but that's the greatest issue.
A 64 bit OS can address a lot more RAM, if you have more than 3 GB of RAM you should have probably looked at the 64bit version. Not to major For most people at this stage...
it's ok though, the serial key for the 32bit version will work in a 64bit copy. So borrow the same version off a mate in 64bit = the same.
When I got my family pack however, I got sent two versions 64 and 32. It's been like that with the licencing from Vista, I've used my 64bit premium key in a 32bit(briefly for a quick install to check compatibility). So Vista/7 you are fine, serial keys are all the same 32/64, but XP has different serial keys to differentiate between 32 and 64bit
I have moved across the ditch. Now residing in Melbourne as a VOIP/Video Technical Trainer/Engineer.
Each process gets a limit of 2GB of ram on 32 bit windows as well. There is an option to push that to 3GB (not sure if that's available in desktop versions) but to be honest, it's probably not a big deal for an average home user.
64bit also has extra registers available on the CPU, which can improve performace. Has better security through ASLR and requires signed drivers by default.
I know when I was running 32-bit vista it would only recongnise 3.5 GB of RAM and I would only have 2.5 after windows had used what it uses. Now Im on 64-bit and it recognises all 4 GB of RAM and it never use to.
Windows 7 doesn't appear to have any problems running 32bit software, and pretty much ALL modern hardware vendors have 64bit drivers. Infact most hardware vendors have been very prepared for the launch of 7, bringing out drivers for both 32 and 64bit versions.
Also, 64 is a bigger number than 32, and therefore must be awesomer.
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