Now that the gubberment gave me back all the money it borrowed without interest, I was looking at upgrading my PC and Jamie's PC to windows 7. My question is, other than price and windows tech support, what's the difference between Retail and OEM? Right now I have Ubuntu running or her PC and she hates the fact that she can't play any games outside of Facebook. So to reiterate whats the difference and what's the better choice, Retail or OEM?

Here's my attempt at contributing. First link on google search of "windows 7 retail vs oem."

http://answers.microsoft.com/en-us/windows/forum/windows_7-windows_install/how-exactly-does-windows-7-retail-vs-oem/fae7b2ab-c530-45e6-aeb3-cc55cf7b9231

It depends on what you plan on doing with the computers.  I know that with my systems the Home series doesn't always work well since with my home server I can't remote into those systems.  With Ultimate you get all the features.

Not so fast!

Go with Home Premium. The only major thing missing from the Home Premium (by default is the ability for remote access via Remote Desktop, however......

I have found a way to enable Remote Desktop support on Home Premium. Ok, so I didn't develop the method, but I did find it with some searching of the Googles.

http://www.missingremote.com/guide/how-enable-concurrent-sessions-windows-7-service-pack-1-rtm

There was previously a version of the above for Windows 7 without SP1, but I'm sure you'll be installed SP1 anyway, so use the above. I recommend against enabling the blank password logon (for security reasons), but otherwise this is all you need to enable Remote Desktop access to Win7 Home Premium.

Other than that, you're not really missing anything from Pro or Ultimate that you might need or miss. Remote Desktop might not even be something you're concerned with, I just wanted to share that for others' knowledge.

Alright guys thanks a-lot. I will go with home premium. And am i correct that both 32 and 64 bit are on the same disk?

Not on the same disk, but definitely in the same box (especially if you get it retail).  Oem copy will be licensed for either 32bit or 64bit but the disk you get with only be one of the other... the cdkey you get however will work with both.

As a home computer, home premium is 100% fine.  However, personally for me, i prefer at least Pro for Windows.  Other than the obvious, i thought they removed lots of advanced stuff like many of the MMC snapins, among other things from home premium?

From the winsuper site:
<<
Windows 7 Professional

The leap from Windows 7 Home Premium to Professional is quite a bit less profound, though of course certain people will simply have to get this version because it includes key business-oriented features like support for Active Directory-based domains. Windows 7 Professional users also gain access to Windows XP Mode, a fully-licensed version of Windows XP with Service Pack 3 that runs in a virtual machine under Windows Virtual PC and lets you solve any lingering compatibility issues caused by the big upgrade to Windows 7.

Additionally, Windows 7 Professional supports more RAM than does Windows 7 Home Premium, at least in 64-bit guise: 192 GB vs. just 16 GB for its lower-end cousin. It provides automated network backup capabilities to Windows Backup (arguably a key differentiator for individuals) as well as support for the Encrypting File System (EFS). It adds Remote Desktop host functionality, so that you can remotely control the PC from another PC, and Offline Files support, so you can access network-based documents while disconnected from that network. And Windows Mobility Center provides a unique presentation mode feature that isn't present in Windows 7 Home Premium.

Windows 7 Professional isn't as much of a slam-dunk as Windows 7 Home Premium, but then you either need it or you don't. Some of the discretionary advantages--I'm particularly fond of automated network backup functionality, for instance--could be a deciding factor. But for those who don't need domain support, Windows 7 Professional is overkill that doesn't really justify the price hike.
>>

Well, there's something to be said about future-proofing yourself for Crysis 3.....

I know someone is going to bring up PAE. http://en.wikipedia.org/wiki/Physical_Address_Extension

But I refuse to believe in that voodoo! Go 64bit!

Also:

Microsoft Windows implements PAE if booted with the appropriate option, but current 32-bit desktop editions enforce the physical address space within 4GB even in PAE mode. According to Geoff Chappell, Microsoft limits 32-bit versions of Windows to 4GB due to a licensing restriction,^[2] and Microsoft Technical Fellow Mark Russinovich says that some drivers were found to be unstable when encountering physical addresses above 4GB.^[3] Unofficial kernel patches for Windows Vista and Windows 7 32-bit are available^[4] that break this enforced limitation, though the stability is not guaranteed.