Do you have a manual? If not here is where you can read a copy and print a copy of it:
http://www.fisherlab.com/hobby/manuals/CZ3D%29%20REV%202%2010.26.12%20-%20Reader.pdf
Set the sensitivity on the preset mark for a starting point, set the discriminator on 0 and test some coins with an air test. Get a small iron nail, not a galvanized one, and test that. Get some tabs or foil and test those. Make sure you are hearing the different tones and getting ID's that represent the targets.
If you can get reasonable results from air tests, then move to hunting with it. If it is working, you should be able to follow the manual and get some air tests that match iron, foil and coin targets and get set up for detecting targets in the ground.
When you say there were lots of tones, the meter says coin and you dig iron, my first two thoughts are 1) sensitivity too high and 2) maybe too many targets under the coil at once, do you have the 10 inch coil, 8 inch coil, 5 inch coil?
Please read the manual if you haven't already, set up some tests on some targets, and let us know how that works.
Cheers,
tvr