OK, I almost left this alone, but I guess it's a good idea to say this:
I'll write this in lay terms so it's a bit easier to understand.
I'm going to leave the discrimination thing alone for now.
Everything SHOULD NOT make your detector read as "iron" on your meter when searching in the ground, even if you only hunt in all-metal. If it does, then you certainly have a ground balance problem, OR, a defective meter. Audibly, it should not signal "iron" if it's not iron, with very few exceptions. If you have automatic ground balance consider this;
Your detector is sending out voltage to it's coil. This voltage is from 2 volts to as much as 24 volts. Metal detectors with higher than 4 volts going to the coil are considered to be "high gain" detectors. When a high gain detector encounters ground that is highly electrically conductive (it conducts electricity more easily) it responds to the ground more like the ground is one huge, gigantic piece of iron metal, and consequently it thinks the targets are part of the $*##$^( #^ monster that it has encountered.. In turn, it has a very hard time rejecting it all, and it overdrives the metal detector. It is then on "tilt". This is what you hear or read on your meter when it reads as "iron" or responds audibly as iron when it actually is or could be something else.
You can turn the sensitivity (gain) down to zero, but in some detectors that still is not enough to make a difference. Some Bounty Hunters are CONSTANTLY running in high gain, even if you turn the sensitivity down. Certain other detectors have this problem too, even though they cost into the $thousands. High gain does not necessarily mean "high power".
Try this: Turn your detector on. Stay away from everything. Check to see if it reads things correctly in the air and away from ALL metal. If it does in air but won't in ground, then your meter is fine but your ground balance is not working properly and needs to be correctly adjusted, and internally if you have a silent ground balance.
If you have an audio ground balance, then it needs to be adjusted properly, whether you use only all-metal, or discriminate, no matter what. If you have an analog meter it should read correctly, but not if it's ground balance is incorrect. It should ALMOST ALWAYS read properly on American coins in air though. If not, then it needs to go to the factory for some repairs.
Try this if you want to. On some detectors this actually helps;
When searching in some soils and this becomes a problem, try taping a coin-sized STEEL WASHER to the top of your coil, dead center. This (can) cause the detector to not see the ground as the Monster it is, and will lower the sensitivity a bit, thereby making life a bit sweeter for you in some extreme cases. It won't hurt your detector to do this, and as I said, with some detectors it works fairly well too. Sometimes you can cut the sensivity down to 1/2 of it normal strength. We old-timers used to do this back in the late 70's to late 80's with some detectors when they were too high-gain.
BTW, your notch control may help too if there is way too much iron or steel scrap in the ground because it too cuts down on gain a bit.
Good luck and HH
EasyMoney