Nitrogen is used in racing all the time. It doesn't expand or contract with temperature changes at near the rate air does. The more humid the air pumped into the tire, the more extreme the pressure changes can be.
That being said, for normal driving use, air works just fine. I have used nitrogen before, but only in an emergency when I had the nitrogen tank on my truck.
Jay
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If you're not living on the edge, you're taking up too much space!