ACR MLG ALTDEV UNDERSHOT ALT XING RESTRICTION DURING CLB OUT FROM SAN.

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LEVEL AT FL330; WE WERE GIVEN A CLRNC TO CROSS 10 ME E OF BARD VOR AT FL370. I LOOKED AT MY DIGITAL DME READOUT AND IT DISPLAYED 015 MI W OF BARD VOR. I FIGURED 25 MI TO MAKE FL370 WOULD NOT BE A PROBLEM SO I ACCEPTED THE CLB CLRNC. A FEW MI LATER; THE SAME CTLR QUESTIONED OUR ABILITY TO MAKE THE CLB RESTRICTION. I SAID TO THE FO; 'WE JUST STARTED OUR CLBOUT OF FL330 AND THE CTLR IS QUESTIONING OUR ABILITY TO MAKE THE CLB RESTRICTION. SOMETHING IS WRONG.' AT THIS TIME I REALIZED WE WERE VERY CLOSE TO THE XING POINT BUT 1500 FT BELOW THE CLRNC ALT. THE FO TOLD THE CTLR THAT TRANSPORT ACFT DON'T CLB TOO FAST AT ALT WHEN HVY OR MEDIUM WTS. THE CTLR RESPONDED; 'WELL YOU SHOULD NOT HAVE ACCEPTED THE CLRNC.' THE CTLR DIDN'T SEEM TO HAVE A CONFLICT PROBLEM BECAUSE THERE WAS NO MORE SAID ABOUT THE SITUATION. I ACCEPTED THIS CLRNC BECAUSE I KNEW I COULD MAKE A 4000 FT CLB IN 25 MI. WHAT I DIDN'T KNOW UNTIL A FEW MINS LATER WAS THAT MY DIGITAL READOUT WAS NOT OPERATING NORMALLY. IT READ 015 (15 MI) AND IT SHOULD HAVE READ 005 (5 MI). 3 OF THE LIGHTS WERE OUT THAT MAKE UP THE NUMBER 0. END RESULT: I WAS 10 MI CLOSER TO THE XING FIX THAN THE DME SHOWED. IF I KNEW THIS I WOULDN'T HAVE ACCEPTED THE CLRNC. IF A CTLR HAS A POSSIBLE TFC CONFLICT AND HE NEEDS YOU TO CLB AND CROSS A POINT AT A CERTAIN ALT; HE WILL USUALLY ASK IF YOU CAN MAKE THE GIVEN XING RESTRICTION BEFORE ISSUING THE CLRNC. THE STATED CTLR JUST ISSUED A CLB RESTRICTION CLRNC THAT WAS IMPOSSIBLE FOR MOST TRANSPORT ACFT TO MAKE. THE COMBINATION OF IMPOSSIBLE CLRNC AND AN ERRONEOUS DME DISPLAY CAUSED US NOT TO MAKE THE RESTRICTION.