My comment about "good" watts vs "bad" watts was tongue-in-cheek... I was trying to make a point that not all signals, when measured, are equal, and I made the comment watt-centric (hence the good/bad thing).
As to your questions, you know how a clipped signal damages... you have 4000+ posts
. Can a CD contains a clipped signal? Sure. I think they call those Rap CDs.
-T