Hey bacardi,
The discrimination aspect on the Sea Hunter Mark II is not recommended. I NEVER used it either. I used the Mark IIs my 1st 2 seasons('04-'05) water hunting with great results.
Unfortunately, PIs have not reached that level of accurately discriminating without losing desirable targets(fine gold in particular). I set the unit to 0 Discrimination/Elimination, Threshold/Volume to just audible and Standard Trash Elimination for the best results. I was able to recover enough pieces to make things interesting too!
The BEST possible discrimination with most all PIs is actually your ears, or audibly. Try and REALLY concentrate on the sharper, round sounding targets and those will be your best signals and whispers are good too(if the wind noise through the headphones will allow you to hear it). The double beeps and more elongated signals will usually be iron, HOWEVER it IS possible top get fooled. I pretty much dug EVERYTHING for about 1 year to make SURE I was really able to leave something behind with confidence and this has helped me using other brands tremendously.
Just an FYI: The Mark II coil of choice for me was the standard 8" mono, but it MUST be coated with Loctite Marine Epoxy with a coat of bed liner to protect the bottom from over-abraiding into the stock epoxy(there is no coil cover for the 8" mono). If you don't protect it, then it will abraid through the coil and separate the plastic shielding from the epoxy and the unit will false.
Best of luck out there mate!