Not sure how much I can help, but I can try...
Did you try editing the show while playing it? If so, then all those controls are supposed to be grayed out too. Stop the recording, select the area or wave file to be edited, and then choose the function. I haven't had any problems with Audacity on any of my machines which mostly use either Windows 2000 or Windows XP.
If you just need a program to cut the tracks with no post production, I would recommend CD Wave Editor (available here:
http://www.cdwave.com), which handles sector boundary errors automatically and is very easy and user friendly to work with. There you simply hit play and hit the cue marker where you wish to split the tracks. Once it's all done, you just click save .cue or save and it'll split the tracks for you.
For FLAC conversion, I'd recommend Traders Little Helper from
http://thor.prohosting.com/roh0205/, it handles encoding, decoding as well as testing of APE, FLAC and SHN files. On top of this it can be used to do the md5, ffp, st5 or cfp checksum files, as well as verify those. To top it off, it can even create the .torrent blueprint file for you. As for creating that, you just need to get the announce URL from the website you wish to upload it, if it's not already included in the program (has most of the major live show trackers listed), and then to point it to the correct folder.
Once you've created and uploaded the torrent to the site, simply download your personalized copy and point your BitTorrent client to the folder with the show. Note that if your show is at c:\shows\FooFighters2006-11-02\ and you create the torrent out of the entire FooFighters2006-11-02 folder, then you need to point the client to the c:\shows folder so that it finds the files and starts seeding.