B757-200
Flight Crew Air Transport Pilot (ATP)
Human-Machine Interface; Workload; Confusion; Distraction
Aircraft Equipment Problem Less Severe; Deviation - Altitude Overshoot; Deviation / Discrepancy - Procedural Published Material / Policy; Deviation / Discrepancy - Procedural Clearance
Flight Crew Took Evasive Action; Flight Crew Became Reoriented; Flight Crew Returned To Clearance
Environment - Non Weather Related; Human Factors; Aircraft
At the gate distraction of a cell phone contact with Dispatch to report significant serious legs error on filed departure (a right 360 turn) during Before Starting Engines Checklist led to oversight on flight instruments and bugs check.  Failed to see METERS mode set on Captain's DCP. Refiled with clearance to fly a different SID routing; creating compounding distraction in checklist compliance.  On climbout; the MCP was set to 7;000 in the FLCH mode 180; but the autopilot climbed to between 7;600-7;700 FT with no altitude deviation alert.  Pilot Monitoring identified deviation; directed descent.  Pilot Flying directed the Pilot Monitoring to take the aircraft and return to 7;000 FT since the Pilot Monitoring had correct altimeter display.  Neither altitude deviation nor loss of separation reported by ATC Departure Control.  Neither Resolution Advisory nor Traffic Advisory alert.  Very insidious danger since the METERS annunciation is small font buried in the flat panel display data; but resulting in virtually no alert.  The aircraft probably would have continued climb to 7;000 meters.  The 757 system does not alert the disagreement when the Pilot Flying has meters selected and the Pilot Monitoring has FT.  Apparently the autopilot prioritized meters over FT.   The Operating Manual is vague about the details.
A B757 Captain's altimeter was inadvertently set to meters so when the aircraft did not level at the 7;000 FT SID constraint the confused Captain gave the aircraft to the First Officer.