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Between 32Bit and 64Bit operating system is the difference framework, Yes you can change from 32 to 64 and 64 to 32 upon your Computer Hardware specification. 32 Bit especially using for those software that available only for the platform 32bit and low memory usage. But is is recommended to use your Original Product key after changing the operating from 64 to 32 bits.
Difference between 32bit and 64bit application is refer the way application can handle memory (RAM) and utilization CPU architecture. 64bit application handle large amount of RAM and more effectively use CPU than 32bit application.
Generally, we can say that 64-bit system handles the big amount of physical memory (RAM ) more effectively than the 32-bit. The 64-bit system provides a larger space for your computing. Logically 64-bit system has the capabilities of utilizing a huge amount of RAM. 64-bit Windows 7 can support up to 192 GB of physical memory, where the Windows 732-bit is only capable to use 3 GB RAM. That means if you install RAM more than 3 GB, it does not works in 32-bit system and the the rest of the RAM just goes wasted. In case of 64-bit system, as it handles a huge amount of physical memory length, the time of swapping the processes in the RAM is minimized. Which means that your 64-bit Windows 7 performs faster than its 32-bit version.
x64 systems can handle much higher amount of RAM and x86 (32-bit) can only handle less than 4 GB of ram. you can't upgrade an existing x86 system to an x64 one, you have to install a fresh copy of the system. You can backup you x86 systems' data and then restore it to the newly installed x64 system (Not everything is supported) .