Lots of DSP is done in fixed-point. Lots of DSP is done in floating point as well. However, the implementation of the code must be altertered accordingly. For example, as I talked about in another blog posting, a biquad implemented in Direct Form 1, doing low-frequency, high-Q filtering at a high sampling rate (say, 192 kHz) can go down to a signal level below -150 dB FS internally. If you're running a fixed-point system, this would be dumb - so you change the biquad impementation to suit. In a double-precision floating point system, this would be no problem, so you don't need to worry.
Regarding the 48-bit fixed point, mentioned above: This was a clever use of the 48 bits, according to the stories I've been told. The signal came in with a 24-bit word length, which was "inserted" into the 48-bit processor in the middle - with 8 bits below (so, 32-bit fixed point if you didn't use a gain above 0 dB) and 8 above (because the system has an internal mixer with the possibility of adding gain above 0 dB. 8 bits above gives you 24 dB of headroom.
Cheers
-geoff