Thanks all for your advice, I also had a problem once or twice with
this transponder on the last digit not showing correctly on their
side.  ATC asked to confirm my squawk a couple times, and then I
suppose he got a supervisor who said "the last digit of your
transponder...what does it read?" He told me to rotate the knob around
a few times, which fixed it.  The airplane was set on 1200 and never
changed for a decade, maybe it just needed to be cycled some 
Dave Butler wrote:
 John R. Copeland wrote:
  That is correct -  there's no adjustment on the encoder.
  Your encoder reports density altitude to ATC.
 Make that "pressure altitude".