Digital optical logic circuits capable of performing bit-wise signal processing are critical building blocks for the realization of future high-speed packet-switched networks. In this paper, we present recent advances in all-optical processing circuits and examine the potential of their integration into a system environment. On this concept, we demonstrate serial all-optical Boolean AND/XOR logic at 20 Gb/s and a novel all-optical packet clock recovery circuit, with low capturing time, suitable for burst-mode traffic. The circuits use the semiconductor-based ultrafast nonlinear interferometer (UNI) as the nonlinear switching element. We also present the integration of these circuits in a more complex unit that performs header and payload separation from short synchronous data packets at 10 Gb/s. Finally, we discuss a method to realize a novel packet scheduling switch architecture, which guarantees lossless communication for specific traffic burstiness constraints, using these logic units.