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(Abridged) We revisit the problem of parameter estimation ofgravitational-wave chirp signals from inspiralling non-spinning compactbinaries in the light of the recent extension of the post-Newtonian (PN)phasing formula to order $(v/c)^7$ beyond the leading Newtonian order. We studyin detail the implications of higher post-Newtonian orders from 1PN up to 3.5PNin steps of 0.5PN ($\sim v/c$), and examine their convergence. In both initialand advanced detectors the estimation of the chirp mass (${\cal M}$) andsymmetric mass ratio ($\eta$) improve at higher PN orders but oscillate withevery half-a-PN order. We compare parameter estimation in different detectorsand assess their relative performance in two different ways: at a {\it fixedSNR,} with the aim of understanding how the bandwidth improves parameterestimation, and for a {\it fixed source}, to gauge the importance ofsensitivity. Errors in parameter estimation at a fixed SNR are smaller forVIRGO than for both initial and advanced LIGO. However, for sources at a fixeddistance it is advanced LIGO that achieves the lowest errors owing to itsgreater sensitivity. Finally, we compute the amplitude corrections due to the`frequency-sweep' in the Fourier domain representation of the waveform withinthe stationary phase approximation and discuss its implication on parameterestimation.Comment: 19 pages, 5 eps figures. Final published version Minor changes to  Tables I, III and VII in view of the recent errata on the phasing formul

Parameter estimation of inspiralling compact binaries using 3.5 post-Newtonian gravitational wave phasing: The nonspinning case