just another fact about altimeter settings... and probably a bad practice for anyone involved...
when i used to fly sailplanes (in real life), the seat-of-the-pants way of calibrating the altimeter was to simply zero it out on the runway, effectively converting it into a height meter
i gather that for sailplanes, this practice has it's uses, since normally sailplanes fly in quiet airfield with practically no other traffic and usually don't go very high (usually... i know that sailplanes CAN go very very high) and thus, turning the altimeter into a height meter can be very practical to estimate when you should be disengaging from the tow, or entering a landing pattern and things like that
however, this can't be done in FSX unless you're very close to sea level, since the altimeter setting does have a limit and can only be turned so far
Cheers
I got to ride in a glider one time and when I asked the instructor what the airport elevation was so I could set the altimeter (He said we were going to 7000 ft so I wanted to follow along) he just set the altimeter just as you described. Was weird for me, especially since I knew it was at least 2000 ft off :P