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I'd like to clear up a misapprehension that people have about recording levels. You don't want to go anywhere NEAR 0dB when recording. Set up your system to produce the loudest noise you think you'll hear, and set that to record at between -7 and -4dBFS. (dBFS = dB Full Scale, your digital measuring system).
The theory here is that an analogue system had a headroom made up of the non-linearity of the recording/amplifying process over certain recotrding levels. (This is the source of your classic 'overdrive' distortion - loud signals are gently flattened by transistors, tape and valves. Louder signals are squashed. The wave-form is rounded and complexity is added).
A digital system has no headroom, meaning loud signals are clipped. This gives instant square wave distortion with no happy medium. So while analogue distortion sounds pleasant and is actually strived for in some situations, digital clipping sounds BAD. Have a play, you'll see what I mean.
So, when recording onto a digital medium give yourself some headroom. You're not going to lose quality with a 16 bit recording medium.
I would advise you get a good sound card though. I can recommend the M-Audio Delta 4/4, which is nice 'n cheap, and gives you the option of recording at consumer, semi-pro and pro line levels. They're balanced inputs and outputs too, which means your signal shouldn't suffer any interference between your mixer and your PC. (If your mixer gives balanced outs).
On-board sound cards generally suffer from noise issues as they are not shielded well from the high-bandwidth data lines and mains voltages flying around in the PC case.
T*
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