Clipping means that you are pushing your signal source too hard and it is producing too much distortion which can ruin your speakers. Loudness is a setting on your deck that elevates the signal during low volume listening. If you use it at high volumes you can cause too much distortion. If you had your bass/mid/treble cranked up it could also produce distorion.

As far as your speaker wiring goes it sounds like your tweeters are getting 70 watts apiece. There should be wires from your amp to the woofer and then wires from the woofer to the tweeter. There should be a little crossover wired inline between the speaker and the tweeter.

Here is a link to your manual to:

http://mobile.jlaudio.com/pdfs/2587.pdf

It should look like that picture.