We have developed a model that accurately predicts the dynamics of the sign
al pulses and the growth of amplified spontaneous emission noise in a dispe
rsion-managed soliton pulse train propagating in a recirculating fiber-loop
experiment. Theoretically predicted dependencies of the amplitude and phas
e margins for the marks and the amplitude margin for the spaces as a functi
on of distance are in remarkable agreement with the experiments. This model
allows us to determine the key physical effects that limit the propagation
distance in our experiments.