A key question in the design of specialized hardware for simulation of neural networks is whether fixed point arithmetic of limited numerical precision can be used with existing learning algorithms. We present an empirical study of the effects of limited precision in Cascade-Correlation networks on three different learning problems. We show that learning can fail abruptly as the precision of network weights or weight-update calculations is reduced below 12 bits. We introduce techniques for dynamic rescaling and probabilistic rounding that allow reliable convergence down to 6 bits of precision, with only a gradual reduction in the quality of the solutions.