QUOTE
With most 16 bit music there is little headroom left for EQ or DSP affect. When you add them you start clipping.
Ozone 3 uses 64-bit processing. I'm not sure how the 64-bits are "calibrated", but I would expect this to give you essentially unlimited headroom. (But, I don't know about the Winamp VST bridge.) As long as you
normalize before saving to 16-bit, you should be OK.
I use GoldWave. It uses 32-bit floating-point for processing and temporary storage. As long as I normalize (GoldWave calls it "Maximize") before saving, the file is
never clipped by the processing.
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...when you convert to 32 bit float you can "recover" peaks that are over 0 dBFS in the mp3 stream. you can then throw a limiter in the chain to ensure that there will be no clipping.
Unless you are trying to repair clipping by rounding-over the peaks, there isn't much point in restoring the peaks and then re-squishing them with a limiter...