Hi EC / Eric,
Sorry for the delay. I did start answering this thread this morning but had to leave before completing my reply. Not sure I would count myself as a 'pro' by the way, but here goes anyway.
PAW reports barometric QNH on the home screen, which it then uses to compare the altitude of your aircraft with other aircraft using 'barometrically derived QNH', namely ADSB, Mode 'C' or Mode 'S' aircraft. The altitude for the P3i side of PAW is GPS derived. This dates to before a barometric sensor was incorporated into the PilotAware system, and although GPS derived altitude is technically less accurate than barometric, this decision ensured that all P3i aircraft are compared to each other using the same reference, which is the important point.
EC, when you say 'my baro pressure on the PAW was 1012mb when the area info was giving me 1021mb' I presume you are talking about the Regional Pressure Setting? This can often be considerably different to your local QNH as it is the lowest forecast QNH across a fairly wide region, whereas the PAW barometrically derived QNH will always be local. If making a comparison, you need to compare your PAW QNH against a reliable local source, such as your airfield tower weather system, or an aircraft on the ground which has recently had its altimeter checked against such a reference source.
As separation distances at the levels we operate are rarely critical, it is acceptable for there to be a slight variation in barometric QNH. From memory, although we have had one or two baro units which were faulty, I can recall very few. Please feel free to recheck yours against a reliable QNH source and let us know if there is still a significant variation.
Regards
Peter