>  Do
> > all processes + kernel run in Real Mode instead?

Adding to that,clearly, there is some misunderstanding you have about the
real mode and protected mode.
Protected mode is not  *only*  to have virtual addressing, its for 32 bit
addressing scheme as well.
Real mode is a 16 bit addressing thing with 20bit address bus.

hope reading the history of intel machines explains this clearly.

http://en.wikipedia.org/wiki/Protected_mode

Regards
Srinivas Bakki

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