TWR CTLR INTERVENED TO ADVISE FLC OF AN ACR MLG THAT THEY WERE SHOWING 1000 FT BELOW THE LOC FAF. THE FLC FOUND THAT THE DME INDICATION SHOWED THEM CLOSER TO THE ARPT THAN RADAR SHOWED THEM. THE DME HAD BEEN WORKED ON; BUT WAS STILL SHOWING UNRELIABLE TO USE.

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THE ATIS FOR SAN DIEGO HAD A NOTAM STATING THAT THE DME PORTION OF THE LOC 27 APCH 'MAY' BE UNRELIABLE. DURING THE APCH I CHKED THE DME AT VYDDA AND SWATT AND IT WAS CORRECT SO WE ASSUMED THE PROB WAS CORRECTED. WE STARTED OUR DSCNT AT REEBO OUT OF 2000 FT AND COMMENCED THE APCH. TWR CALLED WHEN WE WERE AT 1000 FT AND ASKED IF WE HAD THE RWY IN SIGHT. I SAID NO. HE SAID WE WERE OVER REEBO AT 1000 FT. OUR DME READ 2.3 NM WHICH IS ABOUT THE RIGHT ALT FOR OUR DISTANCE FROM THE RWY. WE THEN LEVELED OFF AT 1000 FT; ACQUIRED THE RWY AND LANDED UNEVENTFULLY. WHEN I CALLED TWR; SAID THAT THE DME HAD BEEN WORKED ON THAT MORNING AND THAT IT WAS GIVING INCORRECT DISTANCES. SHE SAID SHE THOUGHT THEY WOULD TURN IT OFF. WE WENT TO SFO AND RETURNED TO SAN. THE ATIS HAD CHANGED. IT MORE CLRLY STATED THAT THE DME WAS NOT TO BE USED. THE DME WAS STILL ON; HOWEVER; AND STILL GIVING IMPROPER DISTANCE OVER REEBO. WE USED POGGI VOR TO POS OURSELVES AND THAT WAS FINE. WE DID HEAR TWR CAUTION 3 ACFT THAT THEY WERE LOW OVER REEBO. THE DME SHOULD HAVE BEEN TURNED OFF.