I know this is kind of retarded... but how does the amount of Watts a speaker have effect the sound output? becasue my stero in my room, is 1.5*2, and packs a mean punch, and it has extra base, butis it the higher the watts the louder the music goes?

In a small room, you won't need alot of wattage to outut the sound that you desire, but in a concert setting you will need more power to get to the point that everyone can hear and enjoy the music. In a room, sound reflects off of surfaces more often while in a concert setting it doesn't. Most systems try to fool the customer by only showing peak wattage. They will say 300watts peak even though the sustainable wattage is alot less. A better measurement of wattage is RMS and IIRC peak/.667 to get RMS. I am sorry I can't give you more than this but my audio knowledge is limited. Hyrdogenaudio is a good site I go to that has a ton of audio info in about every area you can think of. I suggest going there to get into more detail.

Just forget about what I said about the RMS calculation. It was wrong. Here is a site that can explain the differences. Look near the bottom of the page for wattage. Sorry about the bad info.

http://www.bcae1.com/voltages.htm