The Greaser - I wouldn't call it drivel, I call it an answer.
Ironically EasyFO, I was not the controller for your flight and haven't heard 3rd hand of your problem, but the 3 I have been involved with flew with Orange titles too. I don't want a 'bashing' thread so kept that out. There has been one other occurrance recently that I've heard about with another company on a B737-700 too, so its not just a close-to-home issue.
As Flight Detent asks, how do you get your indications, and is it the full transponder that shows a failure (if you know that part)?
On the TCAS part, can this affect your RVSM status? I was confused when a Birdseed B737 declared this as to how RVSM status was affected.