Started mining on this pool and my discard rate percentage is crazy.
Getworks Accepted Rejected Hardware Errors Utility Discarded
337 39 9 0 1.765 669
scan time = 28
expiry = 7
queue = 1
even at queue 0 it was this bad.. tried 30/30 on scan and expiry and no diff..
is this normal for the pool ?
Scan time and Expiry shouldn't really have any effect on a Stratum pool. But I wouldn't set my Expiry that low in any case. Put them back to default Scan = 30, Expiry = 120 and see what happens.
You really only need to play with these setting if your solo mining or using a Getwork pool, so you would have a low scan time to detect new blocks. But Stratum pools will tell you when there is a new block, so it's not necessary.
+1!

Try setting both to 9999 and
queue to 0 (remember that the staged work, ST, is always 1+
queue).
Your discarded stats are normal, as staged work is discarded on "new blocks" (real new blocks for the mined coin or coin switches, displayed as NB on cgminer's stats).
Discarded work approaches ST*Getworks. As you were using
extra staged work in queue = 1 (meaning ST=2, two staged work items), you should get around 2*337 = 674 discards.