Maybe I need to rephrase the question.
So if D1 and D2 clips the positive wave, which one of those does the clipping and which one is there just for the 0.7 voltage addition?
Reason I'm asking this is that if I was going to change one of the four diodes to germanium type I would like that diode to do the clipping and not just change the treshhold voltage.
....or am I thinking this all wrong?
The answer is the same. You must put at least 1.4V across the two diodes before either one can conduct, so the clip level will be 1.4V. Clipping takes place when BOTH those two diodes are forward biased. When they are both forward biased, there will be .7v across each diode, for a total of 1.4v. If you use 3 diodes, the clip level will be 2.1V. If you use 1 diode, the clip level will be .7v.
The operation is the same if you use one germanium diode, but the clip level will be lower. If the forward voltage for germanium is .2v (I don't recall what the accepted voltage drop is) then the total clip level will be .9V.
You can create some very different clip levels by using zeners in combination with silicon or germanium diodes. Or you can use a pot connected to some reference voltage to fine tune the clip level to exactly what you want.
You can use a scope and a sig gen to easily verify this.