WRONG ALTIMETER SETTING CREATES AN ALTDEV ALT OVERSHOT IN DSCNT IN CPR ACFT.

Narrative

DURING A DSCNT INTO THE CLEVELAND AREA; WE WERE GIVEN A CLRNC FROM A FLT LEVEL TO CROSS AN INTXN AT 10000. THE CLEVELAND CTLR GAVE ME AN ALTIMETER SETTING; BELIEVED TO BE 30.37. ON THE READBACK I READ THE XING RESTRICTION AND ALT; ALTIMETER SETTING OF 30.37. I IMMEDIATELY PUT 30.37 IN MY ALTIMETER. OUT OF FL180 I MADE A CALLOUT; 'OUT OF 180; ALTIMETER 037!' AFTER LEVELING AT 10000 WE WERE TOLD BY ATC TO MAINTAIN 10000. I RESPONDED THAT WE WERE LEVEL AT 10000. I WONDERED WHY ATC ASKED US TO MAINTAIN 10000; SO I RADIOED BACK FOR AN ALTIMETER SETTING. ATC REPLIED 29.37. I READ BACK 937 AND WE CLBED TO 10000. SUPPLEMENTAL INFO FROM ACN 234398: WE RADIOED BACK THAT WE WERE LEVEL AT 10; AND THEN REQUESTED THE ALTIMETER AGAIN. THE CTLR GAVE US 29.37; I IMMEDIATELY CLBED AND RESET THE ALTIMETER. THE DIFFERENCE WAS 1000 FT OF ALT. THE 29.37 ALTIMETER WAS VERIFIED BY MY COPLT ON THE CLE ATIS. I DON'T KNOW IF THE CTLR GAVE US THE WRONG ALTIMETER; OR IF WE MISUNDERSTOOD HIM; OR IF WE JUST SET IT IN ERROR.