I have a Prism III and I don't have these problems. The only fault with Prisms is that they love little pieces of linear iron and steel (wire, nails, etc) and they don't go very deep. With a little practice though you will never need a pinpointer at all. Here is how to do it:
When you find a target just keep it in discriminate mode (NOT all-metal, because all-metal is a wider search pattern) and quickly wave it back and forth only, not forward and backward. Fan it quickly, little by little, slowly working the coil toward the center of the target 1/2" to 1" at a time, quickly narrowing down the detection width of the target. If you are off target it will signal only one direction, left, or right,, not both. If you are right over the target you will get a sound each direction. Do NOT wave it back and forth 2"-6" at a time, because you will never find the center that way. It will just drive you nutz! If you do this, no matter what, you will always be on center. If you fan it too slowly it will never center well for you. If you still find a signal in the hole and have done exactly as I just wrote, you can bet your paycheck that the target is still in the hole but a bit deeper than you thought. Always dig holes with straight sides too otherwise it confuses your detector as to where the target actually is, left, right, or front or back. A Prism II and III will get up to 6" on a penny or a dime in near perfect soil conditions, but seldom will it detect any deeper, unless the coin is larger.
I have never used a pinpointer in my life on any of my 20 machines, including Minelabs. With a little practice you won't need one either.
One other thing to consider: If you have highly mineralized soil your Prism can often make a sound once the soil is removed, even though there may be nothing in the soil. Hot rocks do this, and detectors that have a black sand mode will work best used in that mode if this holds true. If that doesn't help, then it's time to check the hole in all-metal using the switch to pinpoint it with, to see if there really is something metal in there or not, or if the detector is just reacting to a new matrix, it being a new and different type soil (the empty hole). Remember, that the detector sees an air test as yet another different type of soil, not as "air".
Good luck and HH