An 8*10 Gb/s optical time-division-multiplexing (OTDM) system was demonstrated with an electroabsorption modulator (EAM) based short pulse generator followed by a two-stage nonlinear compression scheme which generated stable 10-GHz, 2-ps full-width at half-maximum (FWHM) pulse train, an opto-electronic oscillator (OEO) that extracted 10-GHz clock with a timing jitter of 300 fs from 80-Gb/s OTDM signal and a self cascaded EAM which produced a switching window of about 10 ps. A back-to-back error free demultiplexing experiment with a power penalty of 3.25 dB was carried out to verify the system performance.