Today I left on a mission to check my altimeter. I set the altitude of my grass strip, 100ft. The baro setting read 30.03. Once airborn I contacted YQI about 18 miles away and recieved their current baro of 30.03, right on. This was with a -50 setting under the ALTADJ . When I landed the altimeter read 120ft and YQI is 114 ft, right on again. On the ground at YQI I removed the static line from the D100 , no change . I then reset the ALTADJ to zero and the altitude read 170 to 180 (jumping back and forth), instead of the 114ft. I set the ALTADJ back to -50 and the correct altitude was showing. I reconnected the static line and the correct height of 120ft was showing (still at -50). What is the next step? Will my transponder work correctly with the -50 setting? We are trying to make a fly-in the first of Sept. and will need a working transponder.