"I did the CLRCT, my keyboard worked flawlessly on bios, when windows gives it's launching options, keyboard doesn't work. In windows keyboard works, mouse doesn't"
This indicates that the keyboard is OK, and the BIOS is OK.
I've never tried to use the keyboard during a W7 installation. Could be normal. Lets see if others have anything to say about that.
"But as I insert usb memory stick, my computer freezes, Can't think of way to flash the bios"
With the BIOS update on the stick, you must start or restart the computer with the stick already inserted so it can be recognized in the BIOS. Don't try to insert the stick after you have booted and are in the BIOS.
"Is it possible that my motherboard supports only 32bit windows?"
Download and run the W7 Upgrade Advisor.
Windows 7 Upgrade Advisor - Download - Microsoft Windows
If you can.
Otherwise, look up your processor specs and see if it has 32 bit or 64 bit addressing.