HAWKER 800 CREW MISSET THE ALTIMETER BY 1 INCH AT THE TRANSITION ALT AND HAD TCASII TA WITH ANOTHER ACFT.

Narrative

OUR TRIP BEGAN AT XA30 WITH A DEP FROM SFO WITH THE DEST OF TEB. THE OCCURRENCE BEGAN ON OUR DSCNT TO CROSS LVZ AT FL180. THE DSCNT RATE TO MAKE THIS RESTR IS TYPICALLY EXCESSIVE; REQUIRING A 2000-3000 FPM DSCNT. AS WE MADE THE XING RESTR AND PASSED LVZ; WE WERE GIVEN A DSCNT TO 17000 FT. I HEARD THE FO REPEAT TO THE ATC CTLR THE ALTIMETER OF .32 INCHES. I REPEATED 30.32 AND PLACED 30.32 INCHES IN MY PRIMARY ALTIMETER AND ALSO MY STANDBY ALTIMETER ON THE L SIDE OF THE COCKPIT. AS I CONTINUED MY DSCNT TO 17000 FT; I RECEIVED A TA ON THE TCASII. THE TCASII INITIALLY SHOWED TFC 800 FT BELOW AND ABOUT 10 MI OFF OUR L WING. I IMMEDIATELY REALIZED THAT THE AMOUNT OF ALT THAT I STILL NEEDED TO LOSE CONFLICTED WITH THE ALT OF THE DASH 8 TFC. I THEN PROCEEDED TO DISCONNECT THE AUTOPLT AND SHALLOW MY DSCNT FROM APPROX 800 FPM TO LESS THAN 500 FPM; AND THEN TO LEVEL OFF. THE TCASII WAS ADVISING TO MONITOR VERT SPD; AND I VIEWED THE TCASII AS INDICATING THE DASH 8 TFC OFF OUR L WING AND 500 FT BELOW US. FROM THE INITIAL TCASII ALERT; BOTH THE FO AND MYSELF HAD THE DASH 8 IN VISUAL CONTACT. I BELIEVE THE FO RPTED THE TFC IN SIGHT TO ATC. I DO RECALL THE DASH 8 TFC RPTING OUR ACFT IN SIGHT. AS THE FO WAS LOOKING ACROSS AND OUT THE L SIDE WINDSHIELD; HE WAS ABLE TO NOTICE THAT HIS ALTIMETER VARIED FROM THE ONE ON MY SIDE (L SIDE). HE IMMEDIATELY REALIZED AT THAT TIME; THAT THE ALTIMETER SETTING WAS INCORRECTLY ENTERED INTO MY ALTIMETERS. HE CORRECTED THE ALTIMETERS; AND I IMMEDIATELY RETURNED TO 17000 FT FROM 16500 FT. AS CORRECTIVE ACTION; WE HAVE IMPLEMENTED FULL READBACK OF ALL INSTRUCTIONS AND CLRNCS TO ATC AND WITHIN OUR COCKPITS. IT WAS THE MISINTERP OF .32 INCHES THAT LED TO THE OCCURRENCE. WE HAVE ALSO INITIATED AN ANNUAL RECURRENT CRM TRAINING HEADED BY A FORMER AIRLINE TRAINING CAPT. SUPPLEMENTAL INFO FROM ACN 570387: I READ BACK 32 INCHES INSTEAD OF 29.32 INCHES. THE CAPT PUT 30.32 INCHES IN HIS ALTIMETER; AND I PLACED 29.32 INCHES. I THEN CHECKED TEB ATIS AND TEB ALTIMETER SETTING WAS 29.30 INCHES. I THEN TOLD THE CAPT THAT THE ALTIMETER WAS 29.32; BUT AT THAT TIME; ATC WAS GIVING NUMEROUS RPTS OF DASH 8 TFC AT ABOUT 10 O'CLOCK POS. I TOLD NY ATC THAT WE HAD THE TFC IN SIGHT; AND THAT WE WERE DSNDING TO 17000 FT. I NOTICED THAT THE CAPT'S ALTIMETER STILL READ ABOVE 17000 FT; BUT CTLR STILL WAS QUESTIONING US ABOUT OUR ALT. THIS IS WHEN I NOTICED THE CAPT'S ALTIMETER AT 30.32 INCHES AND CORRECTED TO 29.32 INCHES. AT THAT TIME; WE WERE AT 16500 FT AT ALL TIMES; WE HAD THE DASH 8 IN SIGHT.