ALTDEV B737-500 NEAR DFW.

Narrative

FO WAS FLYING; CAPT MONITORING. FO WAS HAND FLYING TO AN ASSIGNED ALT OF 10000 FT WHILE MANEUVERING TO INTERCEPT THE DEP RADIAL. AT APPROX 8000 FT; I HAD LOOKED DOWN TO ACARS TO COPY DOWN A DEP TIME. AT APPROX 9000 FT; TFC WAS CALLED OUT TO US AT 11 O'CLOCK LEVELING AT 11000 FT. WE WERE STILL CLBING BRISKLY AS I LOOKED OUT TO ACQUIRE THE TFC. WHEN I COULDN'T SEE IT; I TRIED TO LOCATE IT ON TCASII. WHEN I LOOKED UP AGAIN; WE WERE CLBING PAST 10200 FT. BY THE TIME I POINTED THIS OUT TO THE FO AND HE BEGAN A PUSHOVER; WE HAD TOPPED OUT AT 10400 FT. THE CTLR ALSO SAW OUR OVERSHOOT AND CALLED OUT OUR ALT. THE CLOSEST APCH TO THE OVERHEAD TFC ACCORDING TO TCASII WAS 700 FT VERT; 2 - 2 1/2 NM HORIZ. HOWEVER; THERE WERE DEFINITE LESSONS TO BE RELEARNED HERE. : 1) AS THE MONITORING PLT; I SHOULD HAVE MY FULL ATTN MONITORING; NOT DOING ANY NON ESSENTIAL WORK UNTIL DEFINITELY OUT OF THE LCL DEP AREA. I MAY HAVE BEEN A LITTLE MORE AWARE OF THE IMPENDING SIT. 2) FOR THE PF; THE BEST TECHNIQUE IS TO PUT THE ACFT ON AUTOPLT WHEN TFC IS CALLED OUT CLOSE BY. THAT WILL FREE YOU UP TO MORE CLOSELY MONITOR THE SIT AND TO PREVENT THE MISTAKE HE MADE. WHEN I ASKED HIM WHAT HAPPENED; HE SAID HE HAD SIMPLY FORGOTTEN TO LEVEL AT 10000 FT. EVEN THOUGH THE ALT REMINDER WAS SET FOR 10000 FT; IN HIS MIND HE WAS HEADED FOR 17000 FT!