That means you need to set your altimeter to the correct pressure to read properly.

By default, pressing 'B' automatically sets it for you

its the altimeter settings, it gives you the correct altitude above ground level or sea level so you dont hit the ground to soon compared to your altimeter reading. its also used for aircraft seperation below FL180( i believe) so they are all one the same setting and at the correct altitude.
anyone who finds mistakes please correct them

FYI.. 2992 means 29.92 inches of mercury. The US use that instead of millibars to set altimeters. hope that helps

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I know that it involves creating an ILS flight and then using Autopilot. But to tell you the truth I am strictly do VFR flights so I am not sure...but at least you can start by either playing with IFR flights or you can take the ILS flight training first....

Careful with the `B` key guys....

As already correctly stated, ATC is giving you the current barometric pressure which you can match by hitting `b` or calibrate manually on most altimeters - there's usually a knob.

To expand on the high altitude separation issue, in real life all aircraft flying above a certain altitude are obliged to set a barometric pressure of 29.92 irrespective of what the actual barometric pressure is. This is desigend to ensure that all aircraft flying at high altitude are "playing in the same ballpark".

In the U.S.A., again in real life, it's FL180 (18,000 feet). However this is not a world wide level. In the UK it can change many times depending which area you're in which, to me, seems to defeat the point but there you go.

It varies all over the world. BUT as far as Microsoft are concerned, it's a worldwide figure and applies anywhere you fly in the sim. So once you hit that altitude, you have to manually set the barometric pressure to 29.92 otherwise you'll get the infamous "You are x number of feet below/above your assigned altitude" moans until your IFR flightplan is cancelled.

Just remember to set it to true barometric pressure once your descent takes you under FL180.

but then the problem comes when needing altitudes like 1800, which is FL18

well at least if your round san fransisco way you can read the street signs and know where you are:)