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Compressors compress the sound.

it also decreases the volume over the treshold you set by the amount of the ratio. 4:1 means for every 4 compressed dB there will 1dB go over the treshold (or something like that). attack sets the time, when the compressor starts, release is the time it will do its work. attack on 20ms and release on 200ms means it starts 20ms after the first input, for 200ms. u can use this for everything, most common use is on the kickdrum, the bassline and lead sounds. you can slightly compress pads or other sounds aswell (the Soundgoodizer also compresses e.g. and I like to use it on nearly everything). I would say, it is just a tool for designing sounds and for getting the most amount of loudness out of every important sound in a song.

this is my way to describe it, dunno if it is all right, check out the (maybe better) video tutorial over here (even in german ;D) http://www.delamar.de/video-workshops/mu…ompressor-3085/
here is an english one, but without video: http://www.audiocourses.com/article114.html

greetings,
Ramland