I like to say, audiences are immature. They can be used in only two
settings and have no security purposes.
1. The Grouped Listing Web Part can be grouped by Audience. This will
only show Listings targeted to each individual. However, you must either
group by audience or by something else. If grouped by anything else, all
Listings will be shown.
2. Hide or show an entire Web Part.
Neither one of these solutions is ideal. It has its place but it is,
like I said, immature.
Unfortunately, I'm don't think that targeted content gets any better in
SharePoint 2007.