We report a generalized nonlinear Schrödinger equation simulation model of an extreme learning machine based on optical fiber propagation. Using handwritten digit classification as a benchmark, we study how accuracy depends on propagation dynamics, as well as parameters governing spectral encoding, readout, and noise. Test accuracies of over 91% and 93% are found for propagation in the anomalous and normal dispersion regimes respectively. Our simulation results also suggest that quantum noise on the input pulses introduces an intrinsic penalty to ELM performance.