I was thinking the letters looked to blocky and modern also.
Well that stinks... yes, it looks like it's a cut silver, but it's definitely a play coin. What you're seeing is actually supposed to be a porcupine. http://www.treasurenet.com/forums/what/34051-play-money-id-coin.html
Not exactly the type of pine needles a person hopes for.
I never would have got that one, but did agree with everything that was being said towards it looking more modern and very likely being a token.
My initial reaction was a 1/4 cut of a willow tree shilling. Then I spotted ''one dime'' and that was that. It def looks just like something dug here along Chesapeake Bay.