I wouldn't have thought that loud audio would cause a problem like this. Yours is a HDD cam isn't it? I think there must be a deeper underlying problem with the camera. Does it function properly at low volumes?
The main problem you're going to face even with a fully functioning camera is the auto level kicking in to limit the volume. Auto functions never work all that well and you will be dissapointed with the results. Most likely you're going to end up with a distorted mess. A much better way forward would be to record straight off their sound desk if at all possible, so you can control levels properly.
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