32-bit and 64-bit concerns the "data bus" in your PC, a 64-bit means the data bus is able to process data twice as fast as a 32-bit. Being able to process more data means a faster system, but only for certain things -- browing the internet and using Office for example you will see no difference between the two. Graphics processing and scientific calculations will go much faster.
Most 32-bit software will run on a 64-bit system, but you will come across a lot that won't.
Who needs 64-bit ?:
The answer: mostly businesses, universities, scientific groups, and government. If you produce videos, computer art, or develop programs, 64-bit systems will be helpful.
But for the home user, 64-bit is currently a bit overkill.
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