It seems to be working fine on 32bit systems. One the other techs here found these links. I havent tried this yet myself.
Windows 7 Ultimate SP1 installation fails with error code c0000034
http://social.technet.microsoft.com/Forums/en-US/w7itproinstall/thread/1c9a7151-b48c-4a98-aae7-a4b82682ea8e/#bcabda57-7338-499f-aee2-d708e76df315
I dont know what could be causing the issue.