hydrometer is off

I think its safe to say my hydrometer is off.
I checked it 60 degree distilled water and I have a reading of 1.002 1/2...or would that be 1.003?
Anyway, what could cause this to be off that much?.. and is there another type recommended to get? Something easier to read maybe?
Once I had seen a picture of a hydrometer with colors and a larger scale, but I cant find that kind on any suppliers web sites.
Thanks for any feedback!

The little paper thing inside moved before the adhesive dried? I have one that is .002 off in 60° distilled water, I have the tube it came in marked as such, it is also linear in being off. so a beer that is actually 1.058 will read 1.060, at least mine does as verified against my accurate one and a friends refractometer. if you can check it against another known good one you might just be able to adjust for the discrepancy.

here is the easy read hydrometer

here is the link to the hydrometer thread