Narrative:

Altimeters were still set to qnh, resulting in aircraft being 300 ft low while at cruise altitude of FL350. Discovered the problem when ATC advised that aircraft's altitude was 300 ft below FL350.

Google
 

Original NASA ASRS Text

Title: A B737 CRUISES 300 FT BELOW ASSIGNED CRUISE ALT BECAUSE OF WRONG ALTIMETER SETTING BEING USED IN ZSE, WA, AIRSPACE.

Narrative: ALTIMETERS WERE STILL SET TO QNH, RESULTING IN ACFT BEING 300 FT LOW WHILE AT CRUISE ALT OF FL350. DISCOVERED THE PROB WHEN ATC ADVISED THAT ACFT'S ALT WAS 300 FT BELOW FL350.

Data retrieved from NASA's ASRS site as of July 2007 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.