I'm in the middle of playing around with Parallels. I've been a VM Fusion guy for the last couple years, but now I'm trying out Parallels. I don't really have a verdict quite yet.
As for the 32 vs 64 thing...
To simplify things for you, ask yourself if you're willing to spend money on upgrading to 4GB of RAM. If the answer is yes, and you have access to a 64bit Windows 7 install, then do it. If the answer is no, then stick with 32bit.
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