The spur-free dynamic range (SFDR) of a novel microwave-photonic link, using a polarization mode-converter electro-optic modulator in a balanced output configuration, is characterized in this work. Common-mode intensity noise and optical-amplifier-induced beat noise are suppressed using a polarization-selective balanced optical receiver. In addition, thirdorder predistortion is used to reduce 2-tone intermodulation distortion by up to 20 dB, further increasing the SFDR. Unlike the conventional approach using a dual-output Mach-Zehnder modulator, the complementary output signals are combined naturally as orthogonal polarizations into one transmission fiber.