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I've been working on a unit that throws peasant heads, but when he throws the heads, and when they hit the enemy they dont do any damge, ive gone into the projectiles settings and changed the damage its suppose to do... but it doesn't

I know this seems like a silly question, but did you change it's projectile damage type? To say explosive damage, or what ever type of damage you had intended for it. You should also try changing the CLASS of the object to "Explosive Object" or "Lethal Object".

*EDIT*

I just got done tinkering around with this myself, and it appears as though if you want it to explode, you have to give it a lifespan much like dwarven bottles, and also uncheck the flag "Becomes Dormant at Rest", otherwise when the projectile stops moving after it lands, it becomes inactive and won't detonate.

What do you intend for the head to do exactly?

The explosion wont matter as far as damage goes, unless you want the head to stay you dont need to adjust the explosion or boxes. Other wise adjusting the Damage Type, add a Damage to Velocity and add the Damage ratio it should cause damage if it is thrown and hits someone.

the detonation fraction has to be set to 1.000

this is in the lower left of the proj window.

Peasant heads always bounce around which means they never detonate (0.000)

Detonation Fraction? I dont even have that in my fear....not that I can see...lol, In the bottom center is "Promotion on Detonation Fraction" (under promotion) but that doesnt need a number to do damage when thrown at someone.
Are you useing fear 1.5.2?

It's always been in Fear, possibly in a different location for the Windows version. There is a detonation fraction and a media detonation fraction, the former being for impacts with any solid objects, the latter being for impacts with water.

It's kind of an important attribute for creating things