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It should (with a capital S) stay under 0dB in the digital domain (in other words : when you look at the levels in your software). This doesn't mean the levels can't go over 0 dB on your mixer (yet you should AVERAGE around 0dB in the analog domain, on the loudest signal). Those meters operate in the analog level and going over 0 dB is not as critical as in the digital domain. Once you hit 0 dBFS (FS= full scale, the decibel scale used in digital recordings) clipping occurs. Clipping is bad (most actual software still use some interpolation algorhythms to minimize the audible distortion, but don't count on it to save your butt).
So how do you make an optimal recording? Play some stuff, and at the loudest parts (let's say when you are in the meat of a tune, or in the mix), try to have at least a 1-2 dB margin (adjust your recording levels either in the recording software, or when that's not possible, in the windows mixers "recording properties"). NEVER hit 0dB.
After the recording is done, you can normalize it all (or if you want the average volume to be louder, use a compressor or maximizer) with a maximum output peak of -0.2 or -0.1 dB
This very little margin is still a remnant of older cd pressing plants, where a certain period of 0dB peaks was considered as an error (and those machines had an error counter that stopped the pressing once x number of errors were reached).
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