There are many reasons we recommend this. One, a reasonable-sized application created in LabVIEW Embedded can take up up to 256KB. The reason we recommend a 32-bit processor is to fully take advantage of all the signal analysis/signal processing functionality LabVIEW provides without presenting a huge performance hit. Also, we recommend that your targget be running an operating system. This is so that you can take advantage of OS threads through the LabVIEW Timed Loop, as well as other OS functionality such as semaphores.
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Michael P
National Instruments