Ben,
I'm sure I'll stand corrected if I'm wrong but when CD's are mixed so that the quiet passages are too loud then that is compression. A whisper should be a whisper, not a shout. That's my complaint with so many of today's CD's. It seems that the artists must like the "hot" sound. I would think that distortion would occur only when the signal is too much for the circuitry invovled.
I'm sure I'll stand corrected if I'm wrong but when CD's are mixed so that the quiet passages are too loud then that is compression. A whisper should be a whisper, not a shout. That's my complaint with so many of today's CD's. It seems that the artists must like the "hot" sound. I would think that distortion would occur only when the signal is too much for the circuitry invovled.