Nothing against spec work, but theres one thing I dont do, which is discounts. I'll either charge full price, or work for free, nothing in between.

If you charge full price you're sufficiently motivated to do the work, if you work for free, you'll do the work if you feel like it and the client its likely to have no expectations. However if you work for a discount, the client has the same expectations as if they paid full price and you have less motivation to get the work done, which can lead to trouble.