A centralized optical processing unit (COPU) that functions both as a wavelength converter (WC) and optical burst equaliser in a 10 Gb/s wavelength-converting optical access network is proposed and experimentally characterized. This COPU is designed to consolidate drifting wavelengths generated with an uncooled laser in the upstream direction into a stable wavelength channel for WDM backhaul transmission and to equalize the optical loud/soft burst power in order to relax the burst-mode receiver dynamic range requirement. The COPU consists of an optical power equaliser composed of two cascaded SOAs followed by a WC. Using an optical packet generator and a DC-coupled PIN-based digital burst-mode receiver, the COPU is characterized in terms of payload-BER for back-to-back and backhaul transmission distances of 22, 40, and 62 km. We show that there is a compromise between the receiver sensitivity and overload points that can be optimized tuning the WC operating point for a particular backhaul fiber transmission distance. Using the optimized settings, sensitivities of -30.94, -30.17, and -27.26 dBm with overloads of -9.3, -5, and >-5 dBm were demonstrated for backhaul transmission distances of 22, 40 and 62 km, respectively.