The incident is detailed in AIRPROX REPORT No 2009-044.
See
http://www.airproxboard.org.uk/docs/...sedAirprox.pdf .
Although the actions of the Glasair pilot in attempting to avoid conflict visually seem incorrect according to the Rules of the Air, this needs to be put into perspective. The actions of the ATC unit were not particularly helpful.....it wouldn't provide even a Basic Service to the Glasair crew.
How many times have GA pilots been unable to pass their details to that unit due to ATC 'capacity limits'? Being unable to advise crossing above the CTR because that ATC unit is maxxed out providing LARS to people miles away is a fairly typical event, in my experience.
It should also be noted that the hold in which ATC had positioned the C-17 is NOT in protected airspace.....