Hi Anil,
This blog has a good explanation.
www.ibm.com/developerworks/community/blo... Preferable depends, if you need JVM bigger than 2GB (with 32 bit 4GB is the maximun, Java Heap + Native Heap + the Operating System) then you need 64 bit JVM (performance impact).
My expirence in the past is create 32 Bits JVM and scale in vertical and horizontal. Actually with the new JVM 1.6 and 1.7 I'm consolidating 32 JVMs in super 64 bits JVM reducing JVM/servers. Like always, depends in the purpose of the servers and the applications.
To install JDK you only need to download, descompress in one directory and put this directory in PATH environment variable.
Then you can check the "installation" with the command: java -version
Hope this helps.
regards