Windows 2000 architecture has a layered design with a kernel mode and user mode. The kernel mode consists of the hardware abstraction layer, kernel, and executive services which have unrestricted system access. The user mode contains subsystems and has limited resource access. The kernel schedules processes and handles interrupts, synchronization, and recovery. Executive services provide common functions like I/O management, security, and power management through components like the object manager and process manager. Environment subsystems allow running applications from other operating systems by converting their API calls.