@Anderson:
(I cannot quote your original post, I get a smap filter block. Is this the most user unfriendly forum on the planet????)
I am confused hence the question.
I understand clipping in the analogue domain, where 0dB is the maximum available voltage. The dynamic range is then set between the noise floor at 0V and Vmax. In the digital domain, the loudness is determined by the data within the 16 bits, i.e. it's an instruction, not an electrical signal. The clipping mode and other DSP features in media players work on altering the volume data in those 16 bits. That is not the same as a fixed 0dB limit, it's simply resetting the min / max volume. The bit I don't understand is how a DAC converts the volume data into the analogie signal. I understand that if the original recorded data is clipped then there is nothing you can do. If I think I understand what is happening, it's that the dynamic range is compressed at the ADC mastering process?