DC10-30 CREW HAD ALT OVERSHOOT IN EGTT CLASS A. DUE TO FAILURE TO RESET THEIR ALTIMETERS AT THE TRANSITION ALT.

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LYD 1N (LYDD ONE NOVEMBER) SID FROM RWY 23 STANSTED (STN) ALTIMETER SETTING AT DEP WAS 982 MB (28.99). INITIALLY LEVELED OFF AT 5000 FT IN ACCORDANCE WITH SID. MAX SPD RESTR OF 250 KTS BELOW FL100 WAS LIFTED BY DEP. STATING; 'SPD UNRESTR' CLB TO FL80; CONTACT LONDON CTR ON XYZ FREQ; TRANSITION ALT FL60. DUE TO COMPLETION OF THE AFTER TKOF FLOW/CHKLIST; FREQ CHANGE; ACCELERATION TO MORE THAN 320 KTS; COMMENCEMENT OF SHORT CLB; LIGHT WT OF ACFT; IOE TRAINING AND SIGNIFICANT DIFFERENCE IN NORMAL HABIT PATTERN OF CHANGING ALTIMETERS TO 29.92 AT 18000 FT (NOW 6000 FT); AND THE SIMILARITY OF 982 AND 2992 THE CHANGE OF ALTIMETER SETTING WAS OVERLOOKED. AFTER LEVELING OFF AT 8000 FT (NOT FL80) LONDON ASKED US TO VERIFY LEVEL FL80. THE PNF VERIFIED LEVEL 8000 FT. I NOTICED TFC APCHING IN THE DISTANCE; SLIGHTLY L TO R; OPPOSITE DIRECTION; SLIGHTLY HIGHER. LONDON CAME BACK AGAIN AND STATED 'VERIFY FL80; I SHOW YOU 800 FT HIGH.' SIMULTANEOUSLY WITH THIS XMISSION BY LONDON THERE WAS ONE TCASII ALERT; STATING 'TFC ALERT.' THE TFC I HAD BEEN OBSERVING PASSED SLIGHTLY ABOVE (APPROX 500 FT) AND APPROX 1/2 TO 3/4 MI OFF THE R SIDE OF THE ACFT; AS THE PF COMMENCED A VERT SPD DSCNT THE ALTIMETERS WERE RESET TO 29.92. LONDON STATED THAT 'A RPT WOULD HAVE TO BE FILED' FOR THE ALT DEV. THE PNF ROGERED LONDON'S XMISSION. (WE CONTINUED FLT) LONDON CLRED US TO FL200 AND WE PROCEEDED. SUPPLEMENTAL INFO FROM ACN 491190: STUDENT WAS HAVING TROUBLE TALKING ON THE RADIO AND MISSED SEVERAL ATC CALLS BECAUSE HE WAS HAVING TROUBLE UNDERSTANDING THE ATC CTLRS. HAD TO ASK FOR REPEATS. IOE INSTRUCTOR (ME; CAPT) WAS FLYING AND STUDENT IN L SEAT WAS HANDLING RADIOS. TSTMS ON ACFT RADAR WAS DISTRACTING ALSO. HOWEVER; SAW TFC. SUPPLEMENTAL INFO FROM ACN 490670: A LIGHT WT (NO CARGO) ACFT RESULTED IN HIGHER THAN NORMAL CLB RATE. LEVELING AT 8000 FT; WE WERE ADVISED TO DSND. IT WAS AT THIS POINT WE REALIZED THE ALTIMETER WAS STILL ON 982 MB INSTEAD OF 1013 OR 29.92. WE IMMEDIATELY DSNDED TO FL80.