MD11 FLC CLBS THROUGH ASSIGNED ALT DEPARTING FRA. DUE TO FLT CREW'S FAILURE TO RESET ALTIMETERS AT THE TRANSITION ALT.

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WE DEPARTED FRA ON THE NAPIT 3D DEP WITH CLRNC TO 5000 FT WITH THE FO FLYING THIS LEG. WINDS WERE GUSTING TO 37 KTS FROM 220 DEGS. SHORTLY AFTER OUR DEP WE RECEIVED A TCASII TA INDICATION SHOWING TFC IN OUR 1-2 O'CLOCK POS AND ABOVE US. THE DEP CTLR ISSUED A CLRNC TO FL080; WHICH I HAD TROUBLE UNDERSTANDING; AND I ASKED HIM TO VERIFY THE ALT WHICH HE DID; CLRED TO FL080. WE WERE IMC WITH CONTINUOUS LIGHT; OCCASIONAL MODERATE TURB WITH RAIN SHOWERS (LIGHT) OCCASIONALLY MODERATE IN NATURE WITH RADAR ON IN TURB MODE AND 40 NM RANGE. AFTER TKOF CHKLIST ITEMS WERE COMPLETED TO SEAT BELT; EXT LIGHTS AND ALTIMETERS TO GO. WE RECEIVED CLB CLRNC TO FL080 AT APPROX 3500 FT MSL. WE WERE CLBING AT SUCH A FAST RATE; I ASKED THE FO TO SLOW HIS RATE OF CLB PLUS GAVE HIM A SIDEWAYS HANDS MOTION TO START LEVELING TO PREVENT THE TA FROM BECOMING MORE. THE FO LEVELED AT APPROX 7900 FT MSL AT WHICH TIME THE DEP CTLR QUERIED OUR ALT TO WHICH I RESPONDED 8000 FT. HE THEN STATED HE SHOWED US AT 8500 FT TO CHK OUR ALT. WE ALL 3 CHKED OUR ALTIMETERS AND STANDARD HAD NOT BEEN SELECTED AT THE TRANSITION ALT OF 5000 FT. WE IMMEDIATELY CHANGED OUR ALTIMETER SETTING TO 1013HP/29.92. THE ALTIMETER SETTING WHEN WE DEPARTED FRA WAS 29.55 OR 999 HP. THE HIGHEST ALT READING SHOWN IN THE COCKPIT WAS APPROX 8340 FT MSL. AS THE FO CORRECTED TO 8000 FT; THE CTLR ISSUED US A CLB TO FL090 WHICH WAS WHERE THE PREVIOUS TFC WAS LEVEL. AS WE STARTED OUR CLB; I ASKED THE DEP CTLR IF WE HAD CREATED A PROB. HIS RESPONSE WAS 'YOU GOT A LITTLE CLOSE TO TFC AT FL090; 1-2 O'CLOCK; 6 MI' I APOLOGIZED AND CHANGED TO FREQ THAT HE HAD ASSIGNED WHEN WE WERE CLRED TO FL090. THIS WAS A VERY BUSY DEP! WX; TURB; CLOSE TOLERANCE DEP PROC; A TA ON TCASII; CHKLIST; COMMUNICATING PLUS THE RELIEF PLT ANSWERING A CALL ON INTERCOM FROM CABIN ATTENDANT ABOUT A CAT ON BOARD PLUS TRYING TO FINE-TUNE THE RADAR THAT WAS NOT SHOWING THE PRECIP THAT WE WERE ENCOUNTERING. ALL THE ABOVE DOES NOT EXCUSE 3 QUALIFIED; EXPERIENCED PLTS FROM OVERLOOKING SETTING ALTIMETERS TO STANDARD SETTING AT 5000 FT; BUT IT SURE ADDS TO THE CONFUSION. ALL 3 OF US AFTER THE FACT SAID THE SAME THING; 'I THOUGHT EVERYTHING WAS GOING ALONG PERFECTLY AND THAT WE WERE AHEAD OF THINGS.' THE MAIN PROB I SEE IS THE BUSY WORKLOAD PLUS A COUPLE OF SIDE ATTRACTIONS THAT BROKE OUR NORMAL HABIT PATTERNS AND COCKPIT FLOWS. CALLBACK CONVERSATION WITH RPTR REVEALED THE FOLLOWING INFO: CAPT STATED THAT THE DAY WAS COOL; ACFT LIGHT; AND RATE OF CLB WAS 3500 FPM. THEY WERE ABLE TO LEVEL AT THEIR ASSIGNED ALT OF 8000 FT; HOWEVER; THEIR ALTIMETER HAD NOT BEEN RESET TO STANDARD; SO THEY LEVELED OFF 500 FT HIGH. THEY HAD A TCASII TA FROM AN ACFT AT 9000 FT; SO THIS PLACED THEM WITHIN 500 FT OF THE ACFT BUT THEY HAD 6 MI SEPARATION. CAPT FURTHER STATED THEY WERE SO PREOCCUPIED WITH THE HIGH RATE OF CLB OF THE ACFT THEY WERE MORE PAX THAN FLC.