RSager: Watch this youtube video a few times http://www.youtube.com/watch?v=C4W2zwVvDkg
Note: This video is Cubase 4 but should help 
Jack 
ps: Check google for setting recording levels
RSager I tend to record Audio High Frequency things
Cymbles–Tambourines - etc. at a lower level and
most everything else at moderate levels.
Always use your Ears and Eyes and maybe test recordings.
In Cubase 7 theres a “BRICKWALL LIMITER” that I’ve been using
on my INPUT Channels. Works great.
A person could write a book on this subject