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We demonstrate that chromatic dispersion and group delay ripple limit the performance of all-optical regeneration based on self-phase modulation. The level of degradation depends in detail on the type of phase distortions introduced. The regenerator performance is measured using the optical signal to noise ratio (OSNR) margin provided to the system for a given bit error ratio. The addition of chromatic dispersion and group delay ripple induces a significant reduction in this OSNR margin.