chip time vs. watch time

you sure you started and stoped it exactly?  Are you sure you didn't receive any penalties?  That would account for the official time being longer then your recorded time

I don't know of any 37-second penalties.

I've noticed that chip times vary from watch times by a few seconds, but I've never experienced that much of a difference.

maybe you just got a whole lot of them

Actually, it sounds like they had computer issues and had to switch to the back up hand timed system.  I believe it would be worth e-mailing the RD for an explaination.  At my last tri, it was all hand timed with a computer that they just type in your number and hit a button as you pass through transition, so it would time stamp when you came in and left.  The old people running it couldn't read the body marks or hear you yell out your number, and then took a fricking century to input the numbers.  Took them a week to iron out final times and a number of people were lacking bike and run splits.  In that race, a friend of mine timed me and her time came out a good 5 min faster then what official time was.  I just figured that if my time was that screwed up, everyone else's must be too, so I went with the official time and ranking.

Slight hijack:  Vince, which race is that where you're wearing your Aquaphor Active gear?

In regards to time, 37 seconds isn't really that much.  5 timing mats and when you started and stopped your watch.  Did you start it when YOU hit the water or when the gun went off?  Just some error possibilities.