Whether you use compression at all depends upon the track needing it.
As far as recording with compression, once again, only if needed.
A case where compression could help. If a vocalist is running the extremes dynamically while recording. A compressor can help assure a more constant record level.
In the case of like a distorted guitar, compression really is not neccessary while tracking, and I have seldomly found a reason to apply a compressor at mix either.
Shailat. Seldomly have any of my analog friends talked about using compression going to tape while recording analog. The reason is that mid-to-high end analog recorders running at +4 record levels will offer a certain amount of compression while tracking if the input levels are hot enough to saturate the tape. As opposed to that, with digital, compression while tracking is totally neccessary to like you say stop clipping, but also to assure hot enough record levels to use all the bits of resolution the A/D converters will offers. In digital, the lower the record level, the less bits of resolution you have. So, sometimes a compress or limit to assure better bit resolution on a track. In analog, I would be able to skip the compressor in most cases and just record hot to tape.
Always, the shortest signal path will produce the best results. If a component is not needed at tracking, it should not be inline even in bypass mode. It is just another connector corrupting the signal path. Pre amp to tape is the shortest signal path available and should always be used to assure the best signal. If compression is needed to assure better recording levels, then a modest amount of compression could possibly be used. Although, I have found that it is usually more beneficial to work with the artist on improving their dynamic range to a point that it is appropriate for recording on the format that is being used.
So definately, compression after the track, if needed, and only before if needed. Depends on the recording format and the goals of the track in the mix.
Good luck.
Ed Rei
Echo Star Studio
www.echostarstudio.com