Yes it is a 64 bit cpu, as of compatibility issue. 64 bit can not run 16 bit programs. Only 32 and 64 bit programs. Like old DOS games. The compatibility issue is pretty far in between now. The OS that had the compatibility issue, was Windows xp pro x64. It came out way before it's time and software and hardware companies wouldn't get together on it. Not till Vista showed up that you start see more x64 bit programs.
But, yes. I would switch to x64 bit. If your motherboard max. out to 8gb. I would suggest the Windows home premium x64.