Comment on Photon Exchange Interactions
  We previously suggested that photon exchange interactions could be used to produce nonlinear effects at the two-photon level, and similar effects have been experimentally observed by Resch et al. (quant-ph/0306198). Here we note that photon exchange interactions are not useful for quantum information processing because they require the presence of substantial photon loss. This dependence on loss is somewhat analogous to the postselection required in the linear optics approach to quantum computing suggested by Knill, Laflamme, and Milburn [Nature 409, 46 (2001)]. 
J.D. Franson