Pro Tools LE uses the power of your CPU's processor to perform mixing and processing. A side benefit of this technology is its ability to use 32-bit floating point math to scale the level of signals to avoid clipping (which translates to great headroom). Signals in Pro Tools LE can indeed clip, but signal management can be easier... you mostly have to watch output levels for mixed signal busses and bring them down so that they don't clip. Pro Tools TDM systems use HW DSP acceleration that utilize 24-bit fixed point math. (Comparing 24-bit fixed point and 32-bit floating point audio systems is a bit like comparing PowerPC and Intel Pentium processors... properly implemented and designed, you can get a great result out of either one... but comparing the techniques used directly can be difficult!) TDM systems provide 48 bits of precision at the mix bus, which allows a very large degree of headroom as well. However, Plug-In processing in the TDM world is restricted to a 24-bit data path, so as with most any signal processing in the audio world, some attention to level setting is necessary to avoid clipping. For example , if you introduce a signal into a DigiRack EQ that is close to "full code" (the hottest digital level before clipping) and you add a large boost on an EQ, you will likely clip the EQ Plug-In. Just as with any rack mounted device, etc., you can avoid this simply by using the input attenuator control provided. The EQ Plug-In for Pro Tools LE behaves the same way, but because all of the processing is occurring in the host computer, the levels can be scaled for you to avoid most clipping without adjustment (other than mix outputs which require it). Note: Some Plug-Ins use a technique called "double precision arithmetic" to provide 48 bit precision when processing, which results in increased headroom. This is great, but keep in mind that these Plug-In do require roughly twice as much DSP power to do their work.Because of these differences, if you plan on exchanging sessions between Pro Tools LE and TDM systems, it can be prudent to attenuate the input level of a Plug-In like DigiRack EQ if you have applied a large amount of boost to a predominant frequency (like a big booming kick drum). This will avoid the possibility of clipping in the TDM version of the Plug-In, and you'll still get to take advantage of a "24-bit clean signal" when levels are set correctly.