Experimental results are presented demonstrating how four-wave mixing in a semiconductor optical amplifier can be used to remove pulse pedestals introduced due to nonlinearities which occur upon pulse propagation in an optical system. Such pedestals would degrade the performance of an optical time-division-multiplexed system due to coherent interaction between channels. An improvement of the temporal pulse suppression ratio to greater than 30 dB is achieved regardless of the level of the pulse pedestal on the input signal. This improvement takes place simultaneously with wavelength conversion and compression of the optical pulse.