according to wikipedia, this is called the "dunning-kruger effect": http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
Also related, the actor-observer bias, which describes the opposite effect, and has had more research done on it. This is a common problem in psychology, humans are so full of contradiction.
https://secure.wikimedia.org/wikipedia/en/wiki/Actor%E2%80%9...