A CE560XL First Officer set the altitude alert for 2;000 FT before takeoff on the RUUDY 2 RNAV subsequently the Captain overshot the initial crossing restriction by 100 FT.

Narrative

While departing TEB on the RUUDY2 departure; we climbed to approximately 1;800 FT MSL prior to reaching the WENTZ waypoint. We should have crossed WENTZ at 1;500 FT then climbed to cross TASCO at 2;000 FT. When setting the altitude alerter; I entered 2;000 FT rather than 1;500 FT. I pointed this out to the Captain/pilot flying when called for on the checklist and said that 1;500 FT would be an intermediate altitude with 2;000 FT; 2;000 FT would be the level off unless otherwise directed by ATC for the remainder of the SID; and he acknowledged. It should be pointed out that prior to and during the taxi phase; the MFD dropped the map presentation of the SID 3 times. This caused a distraction although it corrected itself prior to departure. Also; the EEC (Engine Electronic Control) manual; left annunciator illuminated during the takeoff with a resulting asymmetrical thrust which certainly was a distraction. Shortly after becoming airborne and intercepting the 260 degree course; TEB Tower handed us off to New York Departure Control. At this point; I realized that we had exceeded the authorized altitude by 200 FT and advised the Captain/pilot flying to return to 1;500 FT. I reported to New York Departure that we were about to pass 1;600 FT for 2;000 FT. I should not have included that we were climbing to 2;000 FT [as] we had not yet crossed WENTZ. The Controller responded that we should be at 1;500 FT until crossing WENTZ. The Captain/pilot flying returned to 1;500 FT and complied with the remainder of the SID. I conclude that the reasons that lead to this situation were: 1) the fact that I set 2;000 FT into the altitude alerter rather than 1;500 FT as I should have. It should be noted that the previous Captain that I flew this SID with (who came from a like background as this Captain - both former fractional crew members) requested that I set the altitude alerter as I did on this occasion. I incorrectly assumed that this is what the Captain/pilot flying wanted. 2) Distractions caused by the MFD anomaly and the EEC situation should have been reason enough to preclude or abort the takeoff. Both of these distractions resulted in the inattention to the altitude. 3) The Captain was in a rush to get the flight underway. We should never have taken the runway until there was a resolution concerning the MFD. The EEC annunciator and asymmetrical thrust situation should have warranted an abort and certainly contributed to the distraction resulting in the altitude overshoot. Perhaps; in retrospect; I should have called for an abort even though this was not considered an emergency situation.