Video Problem

I am using Multiplayer. The server is set for "Far". The Server is using Java 7 Update 10 which is 64-bit. After I start Minecraft, and Change the settings to "Options / Video Settings / Graphics Fancy", I get a red message that says, "A 64 bit Java installation is recommended for 'Far' render distance (you have 32 bit). When going back to the game, I have sluggish and lagging video which misses frames. This can be solved by changing to "Options / Video Settings / Graphics Fast".