converges more rapidly to its limit f than the ordinary reference continued fraction K(aJ1) with nth approximant f~= S.(0). Here x 1 denotes the smaller (in modulus) of the two fixed points of T(w)=a/(1 +w). The present paper gives truncation error bounds for both f, and g, that exploit the limit-periodic property lima, =a. Certain a posteriori bounds given for g, are shown to be best possible, relative to the given (limited) information available. This is the first instance in which truncation error bounds for this problem have been shown to be best possible. Also included in this paper are results on speed of convergence, a practical method for constructing the bounds, and applications to a number of special functions. The given numerical examples indicate that the error bounds are indeed sharp. For the function arctan z, we give graphical contour maps of the number of significant digits in the approximations f~(z), g,(z) and p,(z), the nth partial sum of the Maclaurin series, for z in a key region of the complex plane. These maps help us compare the various approximations with each other and add to our understanding of their convergence behavior.