Clipping is when an amplification circuit is driven past it's dynamic headroom. When operating within it's limits the output is a smooth sine wave but when an amp is driven into clipping, the gentle radiused peaks of the sine wave are "clipped" off turning the sine wave into a square wave and well, speakers don't like to reproduce square waves. Generaly with mids and woofers it's not an issue but with tweeters it can fry them instantaniously!