SINGLE CPR C525 PLT ACKNOWLEDGED ALT ASSIGNMENT CHANGE BUT ENTERS INCORRECT ALT INTO FMS; RESULTING IN AN ALT CONFLICT WITH ANOTHER CPR ACFT.

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ACFT IS A SINGLE PLT WITHOUT TCASII. I PICKED UP 1 PAX FOR MY RETURN HOME. THIS PAX DIDN'T WANT TO SIT IN THE R FRONT SEAT BECAUSE HE WANTED TO DO SOME PAPERWORK. USUALLY; I HAVE A PAX IN THE R SEAT TO HELP WATCH FOR TFC. MY CLRNC OUT OF FFZ WAS TO CLB TO 4000 FT. THE TWR SAID THERE WAS TFC PASSING NE OF THE FIELD AND TO WATCH FOR THAT TFC. AFTER TKOF; I WAS ABLE TO SPOT AIRPLANES WHILE TURNING TO 300 DEGS. WHEN I CONTACTED PHX DEP; I WAS CLRED TO 6000 FT. THE SUN WAS LOW; AND WITH THE HAZE IT WAS DIFFICULT TO SEE OTHER AIRPLANES. DEP CTL WAS VERY BUSY AT THE TIME. I ENGAGED THE AUTOPLT SO I COULD CONCENTRATE ON CLRING FOR TFC. I WAS GIVEN A NEW HDG AND ALT. I SET THEM IN THE FMS AND CONTINUED THE DEP. SHORTLY AFTER LEVELING OFF AT 8000 FT; THE CTLR IN A PANICKED VOICE; CALLED A TFC CONFLICT. HE ASKED WHAT MY ALT WAS; AND I REPLIED 8000 FT. HE SAID MY CLRNC WAS TO 7000 FT; I HAD TFC AT MY 3 O'CLOCK POS. I IMMEDIATELY LOOKED TO THE R AND NEVER SAW THE TFC. HE THEN CLRED ME TO 12000 FT. IN A COUPLE OF MINS HE CAME BACK AND GAVE ME A NUMBER TO CALL PHX WHEN I LANDED. I CALLED THE NUMBER AND TALKED TO A SUPVR. HE SAID THAT THEY HAD LISTENED TO THE TAPES AND I HAD BEEN CLRED TO 7000 FT AND HAD ACKNOWLEDGED 7000 FT. THE CONFLICTING TFC WAS A GULFSTREAM THAT WAS COMING IN FROM THE NE. I NEVER DID SEE THAT TFC. AS I CONCENTRATED ON CLRING FOR VFR TFC; I BELIEVE I INADVERTENTLY SET THE WRONG ALT IN THE FMS. BY THE TIME THE CONFLICT HAPPENED; I REALLY DIDN'T REMEMBER WHAT ALT I'D BEEN CLRED TO AND ASSUMED IT WAS THE ALT I'D SET IN. THE ALT SELECT IN THE C525 USES A SINGLE KNOB THAT SELECTS ALTIMETER SETTINGS BOTH BY ANGULAR DISPLACEMENT AND THE SPD THE KNOB IS TURNED. IF THE KNOB IS TURNED RAPIDLY; IT WILL CHANGE THE ALT BY THOUSANDS OR TENS OF THOUSANDS OF FT. WITH THE SAME AMOUNT OF ROTATION AT A SLOWER RATE; IT WILL CHANGE THE ALT HUNDREDS OF FT. I SUSPECT I TURNED THE KNOB TOO RAPIDLY AND DIDN'T REALIZE IT. THIS HAS HAPPENED BEFORE; BUT I'VE ALWAYS CAUGHT IT BEFORE. I HAVE EXPERIMENTED WITH CHANGING MY TECHNIQUE WHEN GIVEN HDGS AND ALTS. I'VE TRIED TO SET THE NUMBERS IN THE SYS AND CHK BEFORE RESPONDING. I'VE FOUND THIS IS MUCH TOO SLOW FOR A BUSY CTLR. AT PHX THEY OFTEN GIVE HDGS; ALTS; ALTIMETER SETTINGS IN 1 XMISSION. THEY EXPECT A QUICK RESPONSE OR ARE JUMPING ON YOU FOR NOT LISTENING UP. USUALLY THERE IS NO PROB WITH RESPONDING AND THEN SETTING EQUIP. IF THERE IS A LOT OF RADIO TFC; IT MAKES IT MUCH MORE DIFFICULT TO CONCENTRATE. I WILL BE MORE DILIGENT IN CHKING ALTIMETER SETTINGS ON THE FMS IN THE FUTURE.