I've used both, and have some good results both with Boot Camp and in a VM.
Straight in a VM, the 64bit works fine. I had some driver issues when trying to use Boot Camp, but the install was no problem, and when Fusion converted it to a virtual machine, it worked without a hitch. In Boot Camp I had to grab the nvidia drivers and sigmatel audio drivers, both for the 32bit and the 64bit.
That was basically the only issue I had with either was the boot camp drivers werent' as updated as the actual manufacturers drivers were.
In Fusion tho, no problems whatsoever.
The main thing about going to 64bit is the RAM allocation. In 32, Win 7 only uses 2.7GB. It even tells you it sees more (if you have it), but that it cant' be used. This is just the limitation of a 32bit address space.
As far as settings, I have a 13" Macbook Pro 2.53 (newest model unibody), and i devote 1CPU and 1GB of RAM to the VM. 512 is ok for XP, but not so much Win7. Even with just 1GB everything flies tho... about a hundred times faster than Vista.
The main thing slowing your computer down is the hard drive. Upgrading to a 7200rpm hard disk speeds up Virtual Machine performance considerably (when you have enough RAM).
=)