Matt,
1.2.4 and 1.2.6 are the most stable versions. What you do is
1_Open Audacity by double-clicking the Icon
2_Left Click on Project
3_Left Click on Import Audio
4_Where it says "Look In:" make sure you are in the folder you want
5_Left Click the file you want
6_Left Click on open (NOW THE FILE WILL BE OPEN IN A TRACK)
Now, you play, edit, cut, paste, dub or whatever. Then,
If you want to keep it for further plays, edits, etc you,
7_Left Click File
8_Left Click Save Project and save it to folder you want to.

You can get 1.2.4b here at the bottom
http://www.oldversion.com/program.php?n=audacity

You can get 1.2.6 here.
http://audacity.sourceforge.net/download/windows

Don't forget. With either version you need to download the lame encoder into your Audacity folder to convert to MP3.

"Those Who Do Not Learn From History Are Doomed To Repeat It" George Santayana