If you want to use this tool, or simply want to create tracks that extend the track editors capabilities, you should be familar with the in-game editor, the file structure and the DOS command line.
If you plan to create really 'free' levels, you must be aware that nothing will be done automatically. After creating the track itself (using rvglue, the track editor, Chaos' tools, or whatever), you'll have something you can drive on. Nothing more. Then you have to place "pos nodes", "AI nodes" and "Track zones" for yourself.
If you are not familar with what is called "Extreme Editing", then you should read everything that you'll find at Gibblers Site (external) .
If you don't understand what Gibbler writes on his pages, then you won't understand this tool, too. Remove this tool from your computer, and play Re-Volt, which is more fun in either case.
The creation of a real track is a lengthy task, with many points where mistakes become incorrectable.
If you create a level with the track editor, and find out that everyone takes a jump too fast and lands off-track, you can easily fix it by modifying small parts of you track.
If you create a real track, and find such a problem while making the 'AI nodes', you'd have to go back to editing the basic structure by moving lots of instances around, refining all the pos nodes and track zones, which will take hours or days of boring work you already have done before.
It is always a good idea to create your track with pencil and paper first. (I mean those hardware-only tools that are compatible with your fingers but not your computer.)
You then start building the basic geometry of your level. Floors only, no details, no textures, nothing. Refine it until the track feels right.
Then begin to add details. Slowly. Drive your half-baked track until you really begin to hate it.
And then, when your track feels right and looks great, begin to create Pos nodes, AI nodes and everything else.
And finally look at your track, find out what you did wrong, think about why it is that boring, throw everything away and create an all-new fun track.