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regarding 0x7c00

Hai list,
I have read the following lines in "Linux Device Drivers" By Alessandro 
"Setting Up the X86 Processors
Once the boot device has been selected ,its first sector is loaded in to 
memory at address 0x7c00 and given control"
what is the significance of this memory address 0x7c00?
what is realmode?
Thanks in advance

kamesh jayachandran
SoftWare Engineer 
See my work at www.electricalmachine.com