Using molecular dynamics simulation and the self-consistent renormalization scheme for liquid-state vibrational spectroscopy developed earlier by us, we have calculated the infrared integrated two-pulse photon echo signal for the OH stretch of dilute HOD in D2O at 300 K. Our echo decay time of 37 fs is in good agreement with the experimental value of 33 fs. The experiment was originally analyzed in terms of a model with both homogeneous and inhomogeneous broadening. The parameters from this analysis are in reasonable agreement with those from our theory. Nonetheless, a critical assessment of this analysis raises some questions about its quantitative accuracy. (C) 2003 American Institute of Physics.