The compression of higher order soliton pulses in dispersion decreasing fibers (DDF's) generates ultrashort fundamental soliton-like pulses accompanied by a broad low-intensity pedestal component. In this paper, we investigate the subsequent removal of the pedestal using a nonlinear optical fiber loop mirror (NOLM) to produce high-quality pulses. The influence of higher order effects such as stimulated Raman scattering and third-order fiber dispersion on the pedestal removal from ultrashort pulses are considered, and the effectiveness of using dispersion-flattened fiber within the loop is shown. The technique is experimentally demonstrated for 540-fs pulses generated by compression in DDF, In this case, high-quality pulses are produced by pedestal removal using a NOLM constructed from dispersion-shifted fiber.