Jerry,
Your views of the audio panes seam to actually be "clipped" rather then compressed. If any of you have recorded audio with a digital player, the rule of the game, unlike it's analog counterpart (RTR, cassette), is to have zero red-lines. In other words, if your VU meter goes into the red, you have digitally clipped the recording input. This is not a pretty sound, and tho I'm not sure what happens to the little 0 and 1s, I'm sure it's not good.
I have mastered many recordings to 2 channel with my Tascam DA-30MKII and it is a bitch. The difficulty lies in creating the loudest possible recording without going into the red. It always took me several tries before everything was on the south side of the forbidden zone.
My Cakewalk Pro Audio 9 (real old software, but still good) does have a "normalizer" function to raise the highest point in any recording up to just below the threshold, but in reality, the best way was doing it right on the DAT.
Wayner