We demonstrate and characterize polarization-division multiplexed (PDM) DWDM data transmission for the first time in a range of systems incorporating a net-gain polarization-insensitive fiber optical parametric amplifier (PI-FOPA) for loss compensation. The PI-FOPA comprises a modified diversity-loop architecture to achieve 15dB net-gain, and up to 2.3THz (~18nm) bandwidth. Three representative systems are characterized using a 100Gb/s PDM-QPSK signal in conjunction with emulated DWDM neighbouring channels: (a) a 4x75km in-line fiber transmission system incorporating multiple EDFAs and a single PI-FOPA (b) N cascaded PI-FOPA amplification stages in an unlevelled Nx25km recirculating loop arrangement, with no EDFAs used within the loop signal path, and (c) M cascaded PI-FOPA amplification stages as part of an Mx75.6km gain-flattened recirculating loop system with the FOPA compensating for the transmission fiber loss, and EDFA compensation for loop switching and levelling loss. For the 4x75km in-line system (a), we transmit 45x50GHz-spaced signals ('equivalent' data-rate of 4.5Tb/s) with average OSNR penalty of 1.3dB over the band at 10-3 BER. For the unlevelled 'FOPA-only' 25.2km cascaded system (b), we report a maximum of eight recirculations for all 10x100GHz-spaced signals, and five recirculations for 20x50GHz-spaced signals. For the 75.6km levelled system
(c), we achieve eight recirculations for all 20x50GHz signals resulting in a total transmission distance of 604.8km.