Ummm, yeah.
Clipping in mobile audio is minimized by proper gain settings so clipping isn't an issue. This allows the true measurement of a VU meter.
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The purpose of the gain is to match the signal volts RMS coming from the source (CD player, etc.) to the input of the amp for correct power matching and to minmize clipping.
Here is a guide that will help you set the gain correctly http://www.box.net/shared/uchv4dbk88
You'll need a multi-meter (AC voltmeter, $15 from Radio$hack), Microsoft Excel and a way to burn an audio CD from an MP3 (test tone included).
If you don't have Excel, you can download (free) OpenOffice by Java (Sun Micro systems) from here to read spreadsheets (and you thought spreadsheets were for business) - http://download.openoffice.org/index.html
The best way to set the gain is with an O-scope, but not everyone has a $2000 scope so that's why I made this.
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All about PEAK power.
First off, ignore peak or max watts.
For speakers:
Peak or Max watts represents the absolute maximum wattage a speaker can handle for a split second. Since music doesn't play at this wattage at long intervals, it's not a good representation of true power handling.
For amplifiers:
Peak or Max watts represents the maximum wattage an amp can push for a split second and since music plays an average signal longer than a split second, it isn't a true measurement of actual power.
Continuous or RMS (Root Mean Square) is the true output power. Especially on CEA-2006 compliant amplifiers.
Being CEA compliant is a voluntary action by the manufacturer to have their amp tested by the CEA (Consumer Electronics Association) using standardized test methods. Those amplifiers that are not CEA compliant can put whatever they want for power ratings as they use tricky methods for testing which are unregulated. You know exactly what you're getting from a compliant amp.
Some speaker/sub manufacturers have also gone with CEA testing for loudspeakers to ensure pruduct claims.