Eric,
Noise cancel shifts the receive frequencies by a small amount; listens for noise, then shifts again, listens, etc. It does this ten times and tries to pick the frequency shift that resulted in the least amount of noise. If you are waving the coil around while noise canceling you might be causing the detector to detect signals; it thinks this is electrical noise and that might cause it to pick an channel that is not optimal. I've never found noise cancel to make a huge amount of difference for the most common source of electrical noise- power lines. I've tried both in the air and on the ground. If you do it on the ground you should try be in a clean patch, which is almost impossible at many sites.
Remember Noise cancel only tries to eliminate ambient electrical noise, nothing to do with sensitivity or mineralization. Electrical noise will be both in the air and the ground.
Sensitivity. If you hold the coil still, either in the air or on the ground and the detector is nulling or chirping then you definitely have the sensitivity up too high. Most(not all) experienced users turn up the sensitivity in Manual to the point where it starts to chirp and then bring it down a couple of additional notches. Sometimes once you start detecting you will need to bring it down a couple of notches. Semi auto adjust the sensitivity to where the explorer deems is best. Try switching between sens 1 manual and auto while outside and see what it does for depth. Then when you are inside switch between where you can set sensitivity manually and get a stable detector and then switch to semi auto. You'll see a much more depth in semi auto in the first instance and generally much less in the second.
The last thing on sensitivity is try doing your adjustments with an open screen. I've seen people try do it with most of the screen blacked out and it is in a constant null. Opening the screen revealed the machine going batty.
If you are running the factory settings you will have the coin program selected. This is about the same as running iron mask -8 or so. The coin program discrimination pattern is slanted a bit on the right side of the screen, in iron mask it is straight up and down. Absolutely no difference other than that. Iron mask is just a easily variable discrimination pattern- has nothing to do with what kind of hunting you do, nor does iron mask have any special ability to handle iron trash over regular discrimination.
I hunt almost exclusively with an open screen except for bottle caps(lower right corner) discriminated out. This means I am never in a null except for over a bottle cap. Since I run in ferrous this means a bottle cap signal would sound like a coin to me. The only time I use a pattern is when hunting a park that is loaded with pull tabs and similar trash. Then I black out the entire bottom two thirds of the screen.
And the reason for using little discrimination is because of your last question. Yes, If you only detect through air the ID is pretty accurate. If you are trying to find coins IN the ground accuracy suffers. Depth, mineralization, and the presence of trash cause the ID to get worse. If you have a tight discrimination pattern you will miss many of the coins. Basically learning in patterns or doing lots of editing is a waste of time unless you are hunting for clad.
As you gain experience you will learn which hits that fall out of the normal ID range are most likely to be coins. This takes much time and digging many signals. I really believe in using the smart screen instead of digital to watch how the cursor bounces as you go over a target multiple times. This is generally what will give you the evidence whether or not to dig. Also the less discrimination you have the more the cursor can bounce. Find Mike Moutry's Explorer settings somewhere, there are some nice screen shots that illustrate this.
Chris