If you’re gonna work with pallets, or any reclaimed wood for that matter, go ahead and invest in a metal detector. I’ve used one of these for quite some time now (http://www.harborfreight.com/9-volt-metal-detector-wand-94138.html) and have been surprised at how well it works despite the fact it came from Harbor Freight.
I work with reclaimed wood quite a bit and using a metal detector is an absolute necessity. It only takes one hit on a blade, planer or jointer knife to pay for itself, not to mention the potential for shrapnel.
Artisan Woodworks of Texas- www.awwtx.com