I am a bit confused. No, you can't upgrade. it is a complete install that is required. As far as the second part, you can create another parition and install on that, but you would then be dual booting. (as in you will be priompted as to which OS to load after POST)
I would just back-up any files you want to safe and do a fresh install as I see no reason to dual boot 32 and 64bit of the same OS.
I would just back-up any files you want to safe and do a fresh install as I see no reason to dual boot 32 and 64bit of the same OS.