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I wish someone would explain the blind discounting so I could better understand which setting might be best.

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A quick search of the SNG forums uncovered this:

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It's very simple.

When you fold, equity is usually computed using the stacks before posting the blinds for the next hand.

However, another way to do it would be to compute equity after posting the blinds for the next hand. This is called "blind discounting."

The blind discounting options allow you to choose one, the other, or some percentage in between.

The correct choice depends on how aggressive the game is. If you expect to have your blind nearly always folded to you, then you would want to turn off blind discounting or use a small percentage.

If you expect your blind to nearly always be contested, then you should use blind discounting to some higher percentage.

eastbay

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I suspect this means that higher percentages should generally be used. (And, makes the +0.9% ScubaChuck came up with earlier rather optimistic.)