Well this is timely, its from the Feb 09 Popular Mechanics:
Nitrogen in Tires - Using Nitrogen vs. Air in Car Tires - Popular Mechanics
Q: Is there any advantage to using nitrogen instead of compressed air in tires? Will I notice improved fuel economy or a smoother ride? Will my tires last longer?
A: Sort of. From the top: Air is 78 percent nitrogen, just under 21 percent oxygen, and the rest is water vapor, CO2 and small concentrations of noble gases such as neon and argon. We can ignore the other gases.
There are several compelling reasons to use pure nitrogen in tires.
First is that nitrogen is less likely to migrate through tire rubber than is oxygen, which means that your tire pressures will remain more stable over the long term. Racers figured out pretty quickly that tires filled with nitrogen rather than air also exhibit less pressure change with temperature swings. That means more consistent inflation pressures during a race as the tires heat up. And when you’re tweaking a
race car’s handling with half-psi changes, that’s important.
Passenger cars can also benefit from the more stable pressures. But there’s more: Humidity (water) is a Bad Thing to have inside a
tire. Water, present as a vapor or even as a liquid in a tire, causes more of a pressure change with temperature swings than dry air does. It also promotes corrosion of the steel or aluminum rim.
If I ever need to top off a tire when I’m out on the road, I’ll always briefly depress the tire chuck’s valve with my thumbnail and vent some air. If my thumb gets wet, there’s water in the line. Some
gas stations don’t do a very good job of keeping the humidity out of their air system. I don’t even like to use a water-based tire-mounting lubricant unless I can let the tire bake in the sun for a couple of hours before I air it up and seat the bead. I’ve dismounted tires (not mine) that had several quarts of water inside—probably from a compressed-air hose that collected water and was never purged properly.
How is water relevant to a nitrogen discussion? Any system that delivers pure nitrogen is also going to deliver dry nitrogen. Filling tires with nitrogen involves filling and purging several times in succession, serially diluting the concentration of oxygen in the tire. This will also remove any water.
It’s certainly simple, although time-consuming, for a tire technician to fill and bleed tires. But most shops use a machine that not only generates almost pure nitrogen by straining the oxygen out of shop-compressed air, but will also automatically go through several purge cycles unattended. Some shops have been charging as much as $30 per tire for this service. I think that’s too much. If you’re buying a new tire, it should be far less. Still, the nitrogen generator, filling system and technician’s time aren’t free—the dealer is entitled to some return for that.
So, to answer your specific questions: With nitrogen, your tire pressures will remain more constant, saving you a small amount in fuel and tire–maintenance costs. There will be less moisture inside your tires, meaning less corrosion on your wheels. You will not be able to feel any difference in the ride or handling or braking, unless your tire pressures were seriously out of spec and changing to nitrogen brought them back to the proper numbers.
And from Consumer Reports.org:
October 04, 2007
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Tires - Nitrogen air loss study
Filling tires with nitrogen rather than air is becoming a common practice in the replacement tire market. This service offers tire dealers another avenue for making money while also promoting safety. The claimed safety benefits often include the potential for reducing air loss compared to an air-filled tire. Maintaining proper inflation can help prevent tire overheating; promote optimum tread life; and reduce rubber aging and wheel corrosion. The use of nitrogen in large truck fleets and the commercial tire industry are well documented and support these claims.
The National Highway Traffic Safety Administration (NHTSA) has seen reduced aging of tires filled with nitrogen. Though the data does support that passenger car tires could benefit by all the claims made for nitrogen, tire manufacturers say that they already design tires to perform well with air inflation. And while nitrogen will do no harm, manufacturers say that they don't see the need to use nitrogen, which generally adds $5 or more per tire charge.
Consumer Reports wanted to find out if nitrogen is worth the price, so we purchased a Nitrogen Inflation System and checked out how well the inflation held up over a one year period. We evaluated pairs of 31 tire models of H- and V-speed rated, all-season tires used in our tread wear test from 2006. We filled one tire per model with air and the other with nitrogen. The test was quite simple: fill and set the inflation pressure at room temperature to 30 psi (pounds per square inch); set the tire outdoors for one year; and then recheck the inflation pressure at room temperature after a one year period.
The tires were filled and deflated three times with nitrogen to purge the air out of the tire cavity. We also used an oxygen analyzer to be sure we had 95-percent nitrogen purity in the tire--the claimed purity limit of our nitrogen system, which generates nitrogen gas from ambient air.

The test started on September 20, 2006 and the final measurements were taken on September 20, 2007. The results show nitrogen does reduce pressure loss over time, but the reduction is only a 1.3 psi difference from air-filled tires. The average loss of air-filled tires was just 3.5 psi from the initial 30 pressure setting. Nitrogen-filled tires lost an average of 2.2 psi from the initial 30 psi setting. More important, all tires lost air pressure regardless of the inflation medium, so consumers should check their tires' air pressure routinely. No evaluation was done to assess the aging claim.
Bottom line: Overall, consumers can use nitrogen and might enjoy the slight improvement in air retention provided, but it's not a substitute for
regular inflation checks.
And this is another article:
Nitrogen's tire benefits seem overblown - MSN Money
I guess I wouldn't go out of my way for nitrogen in my tires, but if it was nearby I might give it a try. Gawd knows it cost my husband probably more to fill up that giant air compressor to put air in the tires!