Spices and herbs are the backbone of flavorful cooking. But spices and herbs are two different things, so I'll address them separately.
Spices are are generally only found in dried form and usually ground into a powder. Some, like nutmeg, can and should be bought in whole form. Spices come from the seed, husk, bark or nut of a plant. Herbs, on the other hand, are the leaves and/or stems of the plant.
Some plants do double-duty as both herbs AND spices. Cilantro (also known as Chinese parsley), for example, is a popular herb in Chinese and Southwest cuisine, while its seed is commonly known as "coriander" and is frequently found in Indian dishes.
Most spices have a limited shelf-life, and should therefore be replaced after about six months. While they won't normally spoil, they will lose their flavor over time and there's not much point to adding a flavorless spice to any dish.
Most herbs can be purchased in both fresh and dried form. Whenever possible, I use fresh herbs because the flavor of dried herbs just doesn't compare. Fresh herbs have a much brighter, cleaner and, well, fresher flavor. Dried herbs, however, have a stronger flavor. Therefore, when substituting dried herbs for fresh in a recipe, use about half the amount of dried herbs. Conversely, if substituting fresh for dried, double the amount. Also, dried herbs hold their flavor under the heat of cooking, while the flavor of fresh herbs will break down in long cooking processes. Therefore, when making soups or stews, either use dried herbs, or remember to add the herbs in the last 15 minutes of cooking if using fresh. You can use the dried herbs in the beginning of the cooking process, and then "brighten" the flavor by adding a small amount of fresh herbs in the last few minutes of cooking.
Since fresh herbs don't keep as long as dried herbs, only buy them as you need them and try to use them within two weeks of purchase. The shelf life can be extended if you remember to rinse the herbs as soon as you get them home, pat them dry, wrap in a damp paper towel and store in them in a zip-lock bag in the produce drawer of your refrigerator.
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