The fundamental difference between 32 and 64 bit systems is the size of memory addresses. In theory, a 32 bit system can not work with more than 4 GB of RAM (232 bytes). In practice, it is possible to work around this limitation by using the 686-pae kernel variant, so long as the processor handles the PAE (Physical Address Extension) functionality. Using it does have a notable influence on system performance, however. This is why it is useful to use the 64 bit mode on a server with a large amount of RAM.