It is well known that matched filtering and sampling (MFS) demodulation together with minimum Euclidean distance (MD) detection constitute the optimal receiver for the additive white Gaussian noise channel. However, for a general nonlinear transmission medium, MFS does not provide sufficient statistics, and therefore is suboptimal. Nonetheless, this receiver is widely used in optical systems, where the Kerr nonlinearity is the dominant impairment at high powers. In this paper, we consider a suite of receivers for a two-user channel subject to a type of nonlinear interference that occurs in wavelength-division-multiplexed channels. The asymptotes of the symbol error rate (SER) of the considered receivers at high powers are derived or bounded analytically. Moreover, Monte-Carlo simulations are conducted to evaluate the SER for all the Parts of this paper have been presented at nonlinearity gives rise to: i) self-phase modulation (SPM), where the signal phase is distorted depending on its own magnitude; ii) cross-phase modulation (XPM), where the magnitude of the signal transmitted over neighboring channels modulates the phase of the signal of interest; and iii) four-wave mixing (FWM), where three signals at different frequencies create a distortion at a new frequency. In this paper, we shall focus on the first two effects and assume that the impact of FWM (the third effect) is mitigated by appropriate channel spacing (see, for example, [5]). Many methods have been proposed, both in the optical and the electrical domains, to compensate for the fiber nonlinear distortion [6, Ch. 2]. Soliton-based communication [7] is among the primary solutions to mitigate the channel impairments including the nonlinearity. It is based on soliton pulses, which can propagate through the fiber undisturbed. In recent years, this method has received attention in the context of the nonlinear Fourier transform [8]. Inverting the signal's phase at the middle of the transmission line is another effective approach to reduce the nonlinear distortion [9].In the last decade, the advancement of digital signal processors (DSP) made them a key enabling technology for data transmission over the fiber-optical channel. A number of known nonlinearity mitigation techniques are based on DSPs, three of which are reviewed next. i) Digital back propagation [10] is a well-known method to compensate for the fiber impairments. Using this technique, all the signal-signal distortions can be compensated for by processing the signal at the transmitter, at the receiver, or at both ends. However, digital back propagation suffers from high computational complexity, and it requires knowledge of all copropagating channels. ii) The effects of XPM can be partially mitigated via adaptive equalization that utilizes the time coherency of the XPM distortions (see for example [11],[12]). iii) Using an approximate probability distribution for the channel law, one can devise nonlinearity-tailored detection techniques to improve the symbol error rate (SER) [13], [14]. The optica...