All this means is that some of you have incorrectly set up equipment
These numbers are what your equipment is *sending out* -- so if for some reason you have the most accurate GPS, but your TXP sends out NIC value of 0 (like in Mehrdad's case) you'll "fail" -- minimum acceptable value is 7 (less than 0.2nm)...
Quick edit: As Brian pointed, having your transponder's "GPS Integrity" set to 1E-5 (or worse) will produce too low of SIL values, and will make you look non-compliant (aka "fail"). Garmin's new manuals show the correct value 1E-7 (SIL=3 which is then compliant).... If you have compliant equipment (ie 330ES with 430W or 650), it should be configured this way.