wingchun is right about the peaks and valleys description. I record shows, and if the recorded playback sound hits the last horizontal bar at a particular peak, I've had the recording volume up too loud and experience "clip out". Not all of the song will be muffled sounding, just only at the places in the song where that particular peak went up too high. Doesn't matter how low I play the finished product, I have a ruined recording. There are editing programs for this, but they don't really do much 'magic', they only soften the clips.
Note to DC_Jeff: my earlier comments concerning 'raw' music... I am stating my generic opinion and nothing else.
Also, the way that you wrote your previous post reads as if you are relating 'raw' music to recording clip out.....I responded as to my interpretation of that post.