Question Author
Thanks to you both.
I did try to install 64 bit version, but disc would not boot.
The computer just started windows as normal.
When i opened the disc and tried to run setup.exe, i got the message "This program is not compatible with your version of windows".
Either i'm doing something wrong or it's a one shot deal. Install the wrong version and your stuck with it!
I'm going with your advice Galeck, and sticking with 32 bit (until windows 8 comes out).