If you install Pervasive 32 bits (Server and Client), any 32 application will work just fine (Crystal, MS Office, etc, etc).
Now there is trade off, Pervasive 32 bit will not take full advantage of your server processor or memory.
We have a dedicate dba server with pervasive 32 bits. It works just fine
I don't know if you can have a 64 bits server and the 32 clients. I know it works the other way around (32 Server and 64 Clients)
Save yourself troubles and install 32 (server and client)
Kelloggs