I have the rubber tubing on my peep and I untied it (dont ask why) and am not sure where to re tie it to.

Do I put in in line with the peep(i.e.-directly across from the peep)? Do I tie it above it or below it?

Flipout--usually the peep has a post where the tubing goes over. The other end is tied to your cable. As for finding the best position, draw your bow (but don't dry fire) and see how the tubing runs-off from the peep to the cable. You would want the tubing maintaining the angle of the post on the peep thru to the cable.
In otherwords, lets say at full draw, your tubing is too low or too high on the cable, you will notice a slight elbow where the tubing comes off of the peep--try and get it straight by moving the tubing up or down on the cable--as that elbow stresses the tubing and would eventually break.
The tubing will break sooner or later over time, but it's best for the tubing to maintain the angle of the post thru to the cable.

Mine came with a little cable clip-like thing that went over the cable. It had the same 'Male' end like the peep did.

Hope that "clip thing" on the cable don't fail and fly back onto you eye!!! I just tie that end onto the cable.

I put it above where the cable and string cross and then draw back to make sure I have good clearance.

Some say parallel to the arrow some say on a plane with the peeps reciever knobby thingie. I say make sure you have as little stretch as possible. You only have to have the peep aligned to your pin(s). It really does cut down on the breakage and reduces your worry.

YEAH KNOBBY THINGIE !!! I said it[&o]

I have one of those as well. Do you guys, and gals, think ones w/out tubing is better?
How much noise do you get out of tubing?