The ALICE TPC is the largest and most complex TPC ever built. The 550k readout channels, each capable of sampling the electric charge collected on the pads at 10 MHz, allow 500 million charge samples of the 88 cubic meter drift volume. The TPC is designed to cope with up to 20,000 charged primary and secondary particles corresponding to an occupancy of up to 40% at the innermost radii. Novel front-end electronics were developed which are capable of performing digital filtering and baseline correction of the signals. A TPC test setup was built at CERN where the performance of an ALICE TPC Inner Readout Chamber in combination with the electronics was tested using cosmic triggers and the PS T10 test beam facility. Based on these data the front end electronics performance has been studied in a high track density environment similar to that which is expected at LHC. The space point resolution and particle identification power, via dE/dx, have been determined; Furthermore, the cluster charge straggling functions have been measured for different beta-gamma and compared to theoretical calculations.