manicm:Andrew Everard:
It basically occurs when the amp's power supply can't deliver energy as fast as the output devices are using it, and is so called because the effect is to clip off the extremes of the output waveform - ie the tops of the peaks and the bottoms of the troughs.
It usually damages tweeters by causing their voice-coils, made of hair-thin windings of wire, to over heat and fuse together. This can cause the tweeters to lose some output, scrape or even fail altogether.
How can you tell when listening? When the music seems to lack dynamics as in all instruments and vocals seem to be at the same volume, or is it more obvious? Can one readily tell when clipping occurs? Can you give an example?
If you listen carefully, you can actually hear the volume decrease or the sound change subtley as you turn the volume up. This is where it starts clipping. If you want max volume, listen for this point and dial it back a notch or two.
Also, you might find it actually cuts out all together for a second during the most testing pieces. This is not good, again, dial the volume down.