Does anyone know anything about using powdered food color? What are the advantages/disadvantages to using it? Does it work better/worse than a gel or paste color?

Has anyone used it and what were the results?

I use it when making red or black fondant, adding it with the powdered sugar. I have been very pleased with the results.

I use this brand: http://www.countrykitchensa.com/catalog/mini.aspx?T=1&ShopId=38&CatId=535&SubCatId=1054
Like milkmaid42, I only use it to color my white fondant red or black. (I use the pre-made Fondarific fondant so I just add it directly to the fondant). It takes quite a bit of gel color to get a true red or black, which in turn makes the fondant too "mushy". So it really helps to use the powdered color because it won't change the consistency of your fondant. HTH!
Happy Caking!

I use the above brand and basically for the same reasons.

I also like it for coloring the melts Wilton calls chocolate.

I use the powder mixed with vodka to paint on fondant. It doesn't gum up like pastes and gels. I also use it to color fondant with great results.

I use it as an alternative to petal dust. My local cake shop doesn't sell any dusts, but sells powdered food color. So I decided to give it a try, and it worked just the same as petal dust.