In this paper we consider the vector perturbation (VP) precoding scheme for the multiuser MISO broadcast channel proposed by Hochwald et al. under the practical assumption that the receivers have limited dynamic range. In this case, VP precoding is shown to suffer from an error floor at high signal-to-noise ratio (SNR). As an alternative, we propose precoding with restricted VP (RVP), which takes the limited dynamic range of the receivers explicitly into account by restricting to a finite set of possible perturbation vectors at the transmitter side. We derive the diversity order of this RVP scheme and show that no error floor occurs and that the performance is superior to VP for the entire range of SNRs.