Advantages: Flexibility. You can adjust every functional aspect of the software to suite every project, and every hardware setup, you are working with. In addition, seamless export to major formats; basic plugins for every sort of post-production work come as part of the download. A separately downloadable package of LADSPA plugins takes this to full professional post-production standards.
Disadvantages: Although the interface is simple and can look a little daunting at first sight, it isn’t loaded with bunch of unnecessary things. More patience – and all will be understandable.
Limitations: In Audacity 1.2.x. a plug-in for VST plug-ins is required. Audacity has limited support for dynamic equalizer controls, real time effects and for scrubbing. MIDI files can only be displayed.
For Windows 7 you can get only "provisional" support, although you can run the program can be run under it with certain known issues, involving launching the application, recording and playback and the interface. Audacity 1.3 beta series is focusing on providing full Windows 7 support.
Audacity does not currently support WMA, AAC, or most other proprietary or restricted file formats.