"What exactly do the serrated disc do that the solid do not?
Is there a certain type of design to stay clear of, say a particular way the disc are hung on the rack?.."
Z-man summed it up.....serrated discs are for trash cutting and getting a better bight into harder ground. Smooth discs are for conditioning and loosening.
No, no real design to stay away from especially in your case where you're looking for something to simply powder and level a course. If you need it now, look around at some of the local dealers for a regular duty 6-9' disc (Howse/King Kutter/etc) and add you a little drag of some sort. If no hurry, dig around and find an older disc sitting in someone's yard or out back the dealership. Nothing wrong with the older units with greasable bearings.....unlike sealed bearings, when they get a little play in them you can just pump a little more grease in them and go on. When sealed bearings go........they go.
For you, I'd say find some older unit which might not be so pretty (but not rusting to pieces), grease it up, and take care of business.