Tim Transponder and Mode C encoder are airspace requirements not equipment requirements. Unless you like getting a special flight permit every time you want to fly into bravo airspace, or Charlie airspace, you need and altitude encoding transponder. FAR 91.215 states all Class A, B & C areas must have a Mode C encoding transponder to operate in those areas. This should answer your questions.
Colin & Bev Rainey KR2(td) N96TA Sanford, FL crain...@cfl.rr.com or crbrn9...@hotmail.com http://kr-builder.org/Colin/index.html