However, the 64 bit machine does have an 8 core i7 - needs it to work well - don't know what it would be like with an AMD 2 core. The other 32bit machine has quad core i5.
What processor do you have? According to the roadmap, Intel haven't released the 8-core yet. If it is just a 4 core with hyperthreading, then you might not see much real difference between that and a proper dual core AMD chip (depending on model)
To the OP.
A 32bit operation, strictly cannot access greater than 2GB. However, if you have more than 2GB, the operating system/bios can use a mode called, Physical Address Expansion, which allows it to show a particular 2GB selection to the 32GB program. This means that in reality, you might be able to use 3GB of memory on your 4GB machine, but each program itself will be limited to a 2GB chunk. So if you have large pictures/documents open, your programs might be having to use paging etc. to get all of their work done.
PAE slows an instruction down marginally.
Moving to a 64bit OS, means that the OS can natively access a much larger memory space (not currently limiting in home computing).
However, if you are running a 32bit program, it is still limited to the 2GB area of memory (but the PAE should in theory be slightly faster).