yep -- my understanding is that if the signal being fed to a d7/d8 (mic in or line in) is hot enough to require you to turn the volume knob below 4 (threw in 5 to be safe), to avoid digital overs, it's too hot for the d7/d8's analog circuitry to handle and will cause the analog circutry to brickwall.
This was the reason that the oades started modding d7/d8 analog inputs.