UDP is good for sending messages from one system to another when the order isn't important and you don't need all of the messages to get to the other machine. This is why I've only used UDP once to write the example code for the faq. Usually TCP is a better solution. It saves you having to write code to ensure that messages make it to the desired destination, or to ensure the message ordering. Keep in mind that every additional line of code you add to your project in another line that could contain a potentially expensive bug.

If you find that TCP is too slow for your needs you may be able to get better performance with UDP so long as you are willing to sacrifice message order and/or reliability.

UDP must be used to multicast messages to more than one other machine at the same time. With TCP an application would have to open separate connections to each of the destination machines and send the message once to each target machine. This limits your application to only communicate with machines that it already knows about.