Here's a video that explains it pretty well although he leaves out some key points.
He should be walking and sweeping while he's adjusting the machine.
He neglects to mention that the nulling (threshold silence) we're trying to eliminate is the nulling caused by mineralization and not iron targets in the ground. You can tell if the nulling is mineral related by sweeping in pinpoint. In pinpoint, only the iron will cause a signal and any mineralization will be silent.
So basically, you check for mineralization, then using manual sensitivity, you adjust the sense till the nulling almost disappears and you get a nearly constant threshold tone. When there is little or no mineralization in the ground I can often set the sense in the 28 - 32 range. But in the mineralized fields we have around here in NH, it usually ends up between 16 and 20. If you run the sense too high, the minerals in the soil will mask all your deep targets. A properly adjusted sensitivity allows the machine to see through the mineralization.
The nullings caused by minerals are very small and sound like very tiny bits of iron.
Always use manual sense and just forget about semi auto. Listen to the nulling and adjust the sense accordingly.
http://www.youtube.com/watch?v=AHFEecUefcg