No problems!
Remember the old 8080?
Intel added 16 bit registers and address segments to that, to get the "16-bit" first '86 ISA with 1MB real mode addressing.
Intel then later added the 16-bit protected mode addressing, with the additional global&local descriptor table registers and the '286 ISA.
Next step was adding a 32-bit personality, with the '386 ISA, adding new registers and 32-bit addressing instructions. '386 class CPUs can operate in four addressing modes. Since "real mode" cannot run together with 16-bit and 32-bit protected modes, a new "virtual real mode"or just "virtual mode" for short, was introduced to allow old '86 apps to run in an OS beside newer software.
This way an OS can provide a memory mapping scheme that allows running '86 apps, 16-bit protected mode apps, and 32-bit protected mode apps at the same time. And as you might know, that is exactly what the 'Chicago'-OSes accomplished (aka Win 9x).
Now AMD have just continued this tradition, by adding a new 64-bit personality on top of the '386 ISA.
The x86-64 CPU operates in either of any of two main modes:
'Legacy mode' is basically much the same as the current 32-bit '386 addressing modes. Including the stoneage '86 real mode. And this ('legacy mode') is how Athlon64's are mostly run currently, on old 32-bit OSes like WindowsXP. And even while the new registers and instructions are not available in this mode, it's still the fastest x86-32-bit-thing out there.
If you install Win2K on an A64 PC, this is how the CPU will run by default. You don't need to concern yourself with anything, but making sure your Win2K is fully updated. Immediately after the basic windows install, (no additional drivers or mobo stuff), update to SP6 or better.
So, to answer one of your specific questions: - YES. There is "hardware emulation" for it.
Then there is the new 'long mode', introducing 64-bit computing. There are two submodes, 'compatibility mode' and '64-bit mode'. 'Compatibility mode' allows a 64-bit OS like WindowsXP64ed., to run old 32-bit apps beside new 64-bit apps, much like the '386 can run 16-bit and 32-bit apps together.