Fundamentals of parametric processing in highly nonlinear optical fiber are reviewed. Experimental procedures necessary for construction of one- and two-pump parametric amplifier architectures are described. Pump phase broadening, dispersion fluctuation and birefringence form basic impairment mechanisms in fiber parametric devices and are analyzed in two-pump parametric devices. Parametric signal processing is introduced with specific applications in all-optical regeneration, band conjugation, multicasting, packet switching and signal distortion reversal.