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Wow! Could you post the piece of it where the clipping goes that high?
Uh, that doesn't look trivial - I'd need to cut it out the mp3 since decoding to wav will just clip to full scale audio, or I'd have to retrieve the original CD and take a guess at the settings used to encode.
(12dB is exceptional though - have only seen that a few times)
A random pick from my samples directory gives me Eels - Souljacker which decodes to +2.75dB over full scale. Not close to 12dB, but your 2dB headroom is already too small. The clipping is clearly audible to me.
The 12dB track is 'Red Hot Chilli Peppers - By the Way - Venice Queen' BTW.
REPLAYGAIN_TRACK_GAIN = -9.7400 dB
REPLAYGAIN_TRACK_PEAK = 4.5812
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!! A card that clips at -1dB nowadays is crap, it will sound horrible with many modern music you play. I can play a signal at 0dbfs with my Audiophile without any clipping, and harmonic distortion below 0.01%.
With an Audiophile, maybe, but that's unfortunately not a common consumer soundcard

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I don't think *any* will have clipping if you reduce the level a couple of dB at the decoding stage.
What's 'a couple'? You have to make a bet to a safe margin. The next year the CD's are louder again and boom there goes your margin. Moreover, if you reduce it too much, you'll have problems with people that don't have powerfull enough amplifiers. Been there, done that (with ReplayGain 83 vs 89dB issue). I don't like this kind of solutions.
If you can afford to, then yes, reducing level is always a good solution. If you don't like the effect of the limiter then it is better, as long as you take into account a bad track can go over your safety margin.
Note that if you reduce the dB, the limiter will not have any more effect on the music! So saying 'it's bad' makes little sense as it disables itself in your solution.
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I don't usually listen to clipped music, because I usually listen to wav or cd. And if that music is clipped, it's because the mastering engineer or the artist wanted so. That music is supposed to clip, if you avoid this, limiting the signal, you trade planned distortion (clipping) for added distortion (limiting) not present in the original music.
Ehm, this is factually wrong. If the music is preclipped during mastering, the limiter will preserve that clipping, although it will not be at the full scale of your output. But the planned distortion will not be affected! Feeding a square wave through a limiter gives you a square wave back (but at a lower level).
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That's a different case that I was talking about. In your case, the additional clipping is caused for the additional DSP (compression).
I don't understand at all then. What *are* you talking about?
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Play a 1 KHz sinewave at -1 dB.
Music please.
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Try any modern song that goes up to nearly 0 dB, uncompressed.
Aha, maybe this is your point? For uncompressed data without any DSP in use, it makes no sense to use the limiter for the obvious reasons that there can never be unintentional clipping.
For compressed music I would recommend enabling the Limiter with or without ReplayGain.