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We present in this paper a novel accurate method to analyze the performance of an optical link where the amplified spontaneous emission noise, enhanced by a fiber nonlinear phenomenon called parametric gain, is the limiting factor. Our method allows us to compute the exact error probability given a generic noise spectral density at the input of a direct detection optical receiver, using arbitrary optical and electrical filters. We compare our results with those predicted using the standard Gaussian technique (based on the Q factor), showing that this approximation may lead to significant errors. Our method is then used to evaluate the impact of parametric gain on a realistic long-haul multiwavelength link operating at 10 Gb/s, showing both the system limitation imposed by this phenomenon and the inaccuracy of the Q factor method.