Narrative:

On climb out from msy, ZHU cleared us to 17000 ft and called traffic at the 2 O'clock position. First officer located the traffic and called it in sight. Captain was flying the aircraft and called the traffic in sight. Both pilots visually followed the traffic until the altitude warning horn sounded at approximately 17300+/- ft where a leveloff and descent was initiated. Neither pilot recalls hearing the altitude warning horn approaching 17000 ft. As descent was initiated, a TCASII TA sounded, traffic was noted at the 5 mi ring on the 15 mi scale. No RA sounded. Estimated highest altitude reached was approximately 17500+/- ft. Smooth descent was made back to 17000 ft. Supplemental information from acn 367215: I do not recall hearing a 1000 ft warning horn. It is possible that the traffic radio call came simultaneously with the altitude alert. A greater attention to detail may have prevented this.

Google
 

Original NASA ASRS Text

Title: B737-200 FLC ALT BUST WHEN DISTRACTED WHILE LOOKING FOR TFC POINTED OUT BY CTR CTLR.

Narrative: ON CLBOUT FROM MSY, ZHU CLRED US TO 17000 FT AND CALLED TFC AT THE 2 O'CLOCK POS. FO LOCATED THE TFC AND CALLED IT IN SIGHT. CAPT WAS FLYING THE ACFT AND CALLED THE TFC IN SIGHT. BOTH PLTS VISUALLY FOLLOWED THE TFC UNTIL THE ALT WARNING HORN SOUNDED AT APPROX 17300+/- FT WHERE A LEVELOFF AND DSCNT WAS INITIATED. NEITHER PLT RECALLS HEARING THE ALT WARNING HORN APCHING 17000 FT. AS DSCNT WAS INITIATED, A TCASII TA SOUNDED, TFC WAS NOTED AT THE 5 MI RING ON THE 15 MI SCALE. NO RA SOUNDED. ESTIMATED HIGHEST ALT REACHED WAS APPROX 17500+/- FT. SMOOTH DSCNT WAS MADE BACK TO 17000 FT. SUPPLEMENTAL INFO FROM ACN 367215: I DO NOT RECALL HEARING A 1000 FT WARNING HORN. IT IS POSSIBLE THAT THE TFC RADIO CALL CAME SIMULTANEOUSLY WITH THE ALT ALERT. A GREATER ATTN TO DETAIL MAY HAVE PREVENTED THIS.

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.