Have seen a lot of posts with pro's and con's on Active Handling. Most just that they like it, or they don't and turn it off. Here's part of an article, I found helpful, about AH and what it does in "on", "off" & "competitive driving" (three modes). Some changes were made in 2001 for it to be less intrusive and able to activate while driving.
Hope this answers AH questions for some. Best to use it on the Street, as indicated. You can view the rest of the article at the site listed below.

During the 1998 model year, just prior to production of cars with the Active Handling option, the Corvette's ABS brake hydraulic control unit will be relocated to the front of the engine compartment to facilitate quicker Active Handling system "warm-up" and shorten front brake response time when the brake fluid is cold. In temperatures below 14oF, the Corvette's Driver Information Center (DIC) will display an "Active Handling Warming Up" message as soon as the vehicle reaches 6-mph. That's a caution to the driver that Active Handling is not fully-functional yet. As soon as the system warms up, another message "Active Handling Warmed Up" will be sent to the driver via the DIC.

Competitive Driving Mode
The Corvette Active Handling system will be the first of its type to offer dual mode operation. In addition to an "OFF" mode, in which Active Handling is disabled, the system also allows the driver to select a "COMPETITIVE DRIVING" mode for autocross or gymkhana competitions. In this mode, the Active Handling system remains fully-functional -- measuring steering, yaw rate and lateral acceleration inputs as well as applying individual wheel brakes as required -- but the traction control system is disabled, allowing for some wheelspin and oversteer that skilled drivers often find beneficial in competitive driving.

Summary of Active Handling System Modes

ON - Active Handling is automatically enabled when the car is started. This is also true of the ABS brake and traction control systems.


OFF - Like traction control, the Active Handling system may be manually turned off if the driver so desires. This is not true of the ABS brake system which is always enabled.


COMPETITIVE DRIVING - In this mode, Active Handling and ABS are both enabled, but traction control is shut off.
The "OFF" and "COMPETITIVE DRIVING" modes are important features on a high-performance sports car like the Corvette. As mentioned earlier, skilled drivers may find that some wheelspin and oversteer can be beneficial to their lap times in competitive events, and the Corvette system allows them to operate the car in this fashion when appropriate. Chevrolet recommends against selecting these modes for street use.

Limitations
The overall effectiveness of the Corvette Active Handling system, or any similar system, is directly related to available tire traction and the aggressiveness of a given maneuver. Active Handling is designed to work to use existing traction to assist the driver -- but it cannot overcome the laws of physics. The Active Handling system reacts only in extreme situations, and special care should be taken when the system does activate because it's a clear signal that vehicle or tire limits are being exceeded.

http://www.corvetteactioncenter.com/...ehandling.html

 

I've driven with and without active handling, and I actually prefer to not have it. I know some people can only drive with it on, but to me it really serves no advantage (or disadvantage).

 

All I know is Formula One cars use traction control and AH, so do MotoGP motorcycles(just the TC).
So the fastest race machines use it, and would not hold that title without it..

 

I'm a newbie and just found out how to get to the competitve driving mode. I have recently added a diablosport programmer that seemed to shut down torque management and the rear easily becomes loose at 1st and 2nd gear up and downshifts so should I stay away from the competetive driving mode, I don't autocross just like to go quick safely.