FLC OF AN MLG SET THE WRONG ALTIMETER SETTING RESULTING IN OVERSHOOTING DSCNT ALT.

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ON APCH INTO DENVER ACFT WAS ON AUTOPLT. I WAS THE PF AND GOT THE ATIS. I WROTE DOWN ALTIMETER 30.44. I HEARD THE WRONG ALTIMETER; THE SETTING WAS REALLY 30.04. WHEN THE COPLT SAW THE HIGH ALTIMETER SETTING HE SAID 'BOY; THAT'S REALLY HIGH.' IN CLR LINGO WE CALL THAT 'INQUIRY.' I SAID; 'YES THE PRESSURE IS RISING RAPIDLY.' BUT NOT THAT RAPIDLY. I SHOULD HAVE DOUBLE CHKED THE ALTIMETER SETTING THEN AND THERE BUT I DIDN'T. COMPLACENCY SET IN AND ON OUR DSCNT TO 11000 FT WE GOT AN RA FOR TFC AT 10000 FT. IT SAID 'CLB;' WE COMPLIED AND 'CLR OF CONFLICT.' AFTER THAT; 5 MINS LATER; APCH CTL SAID HE SAW US LEVEL AT 9600 FT AND THE ALTIMETER WAS 30.04. THAT IS WHEN WE RESET OUR ALTIMETER; SAW WE WERE 400 FT LOW; AND CLBED TO 10000 FT. MY MISTAKE IN NOT 'READING' THE 'INQUIRY' FROM MY COPLT AS TO WHAT THE ALTIMETER SETTING WAS; WAS THE LAST LINK IN THE CHAIN THAT LED TO THE ALTDEV. CALLBACK CONVERSATION WITH RPTR REVEALED THE FOLLOWING INFO: RPTR STATED THAT HE WAS OPERATING A B737-300 AT THE TIME OF THIS INCIDENT. HE CLARIFIED THAT HE HAD BEEN RECLRED TO 10000 FT AFTER THE RESPONSE TO TCASII DSNDING TO 11000 FT. HE FURTHER STATED THAT HE NEVER DID SEE THE OTHER ACFT TO WHICH A TCASII RA WAS GIVEN AND RESPONDED TO. HE STATED THAT HE WAS USED TO FLYING IN ALASKA WHERE THERE ARE MANY LARGE VARIATIONS IN THE ALTIMETER SETTING WHICH CAUSED HIM TO NOT REALLY BE ALERTED TO THE ERROR HE MADE IN SETTING THE NEW ALTIMETER READING.