Thanks Jason. I have got it working. Just needed a push in the right direction, my problem was simple, I was putting the php tags in as well %^&*.
For any one else who has a similar problem, this is how it worked for me.
I created another session on the login page that's bound to my members DB column that holds their discounts as a "double" variable type. So it looks like this in the DB 0.05
Then I put a hidden field in my login form that has the new session value. Then when they login they receive their personal discount.
The screen shot in this post shows my set up on the discount tab in the cart object
I had to logout then login again to see it work the first time.
Thanks again Jason. Chris