Thanks for the answer,
I am using an Asux Xonar Dgx soundcard which seems to have its own amp which can boost windows volume beyond 100%. The main reason for my concern is that on the soundcard's control panel., there is a graph which shows the signal power from -20db to +20db. When I put my windows volume to 100% +100% on my soundcard's amp, the graph shows well above the 0db mark (even when the soundcard amp is at 50%). If 0db means the maximum the system can handle without clipping, is this referring to the capability of the speakers or the soundcard?
While clipping does refer to output in more ways than just volume, you likely won't need to worry about it beyond determining distortion (I'll explain more later). For example: with recording uses, it's best to leave the peaks at +/- 0db to prevent clipping; however, with live performances, a DJ could push the live output on his mixer to +4db without much worry of clipping being too noticeable.
If you notice audible distortion, bring down the Window's audio output, and go from there. if you simply want to be able to open the sound card's gain all the way, and avoid clipping, then simply balance out the Window's output with your card's gain at full, and check the sound when you're done. For referencing audio/gaming/etc., it's probably best to avoid going beyond +2db to avoid missing anything. If you want to do anything like studio work, maintaining a 0db reading is ideal (for example).
Also, if the signal was being attenuated after the amp, is it possible that the strong signal would be breaking the amp and not the speakers, as the speakers are being protected by the attenuator? (Therefore I wouldn't be able to perceive the speaker system breaking or is this not possible?)
The amp is simply amplifying the incoming signal. If you were going to break anything, you'd notice that your incoming audio was distorting as soon as you turned up the gain on your speaker system. If your amp can't handle the input, then you would hear something. As long as your sound card's output is within a good range, and you hear no audio problems, you'll be fine.
Now, to get a little more technical, I'll explain this in a different way. Let's pretend you have an amp that had a sort of VU meter on it (or anything to measure the input levels, in the same way one would measure output levels).
If the input was coming in too hot, you would see that the input level would spike, and the output would likely spike as soon as you opened the gain. The audible distortion would also be a dead giveaway that something is wrong. Is this likely to happen? I've yet to hear about it, though I'm sure someone has done it. Also, I'm willing to bet that your amp would likely have very noticeable problems in the short term, and the problems that would happen over the ''long term' would occur relatively quick.
Also, I am using a 20W amp in the subwoofer + two 10W satellite speakers.
Sounds like a typical store-bought set up, so to speak. You won't hurt anything, unless you plug it into something stupid (like a 1,000w amp) and crank both up to 11.