This is the first translation of Tao Te Ching (pronounced Dao De Jing) that I read and I felt that it was superb at the time. However I have since come to doubt the Arthur Waley's translation simply because of his arrogant introduction where he claims that all of the 800-odd translations before his fail to "get to the heart of the Tao Te Ching." As Master Cheng Man-Ching states "Lao Tzu wrote 'My words are very easy to understand' so why are we still left in the dark?"
I suspect the truth is that there is no definitive translation of Tao Te Ching. Instead you have to choose one that is tailored to your specific needs. Waley's serves as a good introduction, but adjusts the text (very, very slightly) to suit the needs of the reader with a grounding in Western schools of philosophy. This is the impression I get.
If you are more interested in the Eastern perspective, especially
the relationship between the Tao and Chi, then I would recommend Cheng Man-Ching's translation with running commentary, titled My Words Are Very Easy To Understand.
I also found Waley's footnotes to be a little obtrusive and not greatly informative. However, these are minor complaints. On the whole I would recommend this translation. Arthur Waley knows more about the Tao Te Ching than I do. But is he a Taoist himself or just a very good scholar? After reading his translation I think you'll know the answer.