If running 32-bit Windows 7, should 32-bit or 64-bit Ubuntu be installed?
Solution 1:
It depends on with Atom CPU you have. Some are 64 bit capable and some not. If your CPU number starts by Z then it's a 32 bits CPU, if it starts with N,D,S or a number then it's a 64 bits one.
Anyway, the safe option here is to install the 32 bit version. You only have 1 Gb of memory, so you are not really gaining a lot installing a 64 bit OS.
Solution 2:
Better install 32 bit version of Linux. Your configuration may support 64 bit but you have less than 2GB RAM and not so powerful processor, so you shouldn't lose performance. By the way Unity desktop in Ubuntu 12.04 use a lot of system resources, better install Ubuntu 13.04 or the old style gnome desktop:
1) Open a terminal
2) Type: sudo apt-get install gnome-session-fallback
3) Type your password
4) Type Y when prompt
5) Reboot and select desktop environment before logging in
6) Login and enjoy gnome :)