An interferometric wavelength converter with preamplifiers for both th
e signal input and the continuous-wave probe input is presented. The d
ynamic range of the device Is enhanced: penalty-free conversion is dem
onstrated at 2.5 Gb/s for input powers ranging from -6 to +4 dBm. Tran
smission of the converted signal over 480 km of standard fiber shows p
enalty improvement relative to the unconverted, information-limited si
gnal.