A BEECH BONANZA PLT IS CRITICIZED BY APCH AND TWR CTLR FOR INFRACTIONS OF ALTDEVS. XPONDER OPERATING PROCS AND POOR POS RPTING 5 MI N OF SGR; TX.

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I RECEIVED CLRNC DOWN TO 2000 FT AND I BUSTED LIMIT DOWN TO 1500 FT. I WAS ALSO TOLD BY APCH TO INTERCEPT NDB RWY 17 AT SGR AND EXECUTE VISUAL APCH. THE CONDITIONS WERE VERY BUMPY AND I HAD A SICK PAX. APCH NOTIFIED ME OF THE ALT VIOLATION AND I CLBED BACK TO 2000 FT. THE CTLR WAS OBVIOUSLY UPSET. UPON CLBING BACK TO 2000 FT; I WAS TOLD TO IMMEDIATELY DSND DUE TO ONCOMING TFC THAT WAS NOT WITH APCH. I WAS TOLD THAT 'TARGETS WILL CONVERGE.' AFTER AVOIDING THE TFC; APCH TOLD ME 'RADAR SVC TERMINATED; SQUAWK VFR; CONTACT TWR AT 118.65.' I NOTIFIED TWR THAT I WAS 4 MI OUT INBOUND FOR LNDG. TWR CLRED ME TO LAND. TWR THEN CAME BACK AND ASKED IF I WAS CANCELING MY IFR FLT PLAN. I TOLD HIM YES; THAT APCH HAD CANCELED IT BY TELLING ME TO SQUAWK VFR. HE TOLD ME APCH HAD JUST CALLED HIM AND TOLD HIM THAT I HAD SQUAWKED 1200 WITHOUT NOTIFYING THEM. I EXPLAINED THAT APCH HAD TOLD ME TO SQUAWK VFR. TWR THEN TOLD ME THAT MY RPT OF 4 MI OUT WAS BOGUS BECAUSE I WAS REALLY 5 MI OUT WHEN I RPTED. UPON LNDG AT SGR; THERE WAS A SPECIAL EVENT GOING ON WITH A LOT OF RESULTING TFC IN THE AREA WHICH CONTRIBUTED TO EVERYONE'S STRESS. MY FLT PLAN HAD ORIGINATED IN KANSAS CITY. SUGAR LAND IS MY HOME BASE.