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For advice on how to defend yourself in a suit, go here and read, read, read
OK, Here is the difference in a nutshell.
"Debt Validation" is what you sent to a collector after you receive their first communication about a debt. It merely requires them to stop collection activity until they verify that the information they have given you regarding the debt matches the information given to them by the Original Creditor.
"Discovery" on the other hand is a process specific to court actions. It is essentially a request for copies of evidence you have reason to believe the opponent has in their possession or evidence you believe they intend to present.
If you have presented the opposition attorney with discovery requests, and they have failed to provide the evidence requested then the next step is to file a "motion to compel" with the court, essentially asking the judge to order the opposition to provide the evidence. If the judge agrees and they still fail to provide the requested information, you may then file a motion to dismiss, or a motion for summary judgment
Does that make sense?
To be honest, this is a subject beyond the scope of this forum. Go to the link I provided. There is TONS of information there on how to handle suits like this. This posting you should find particularly useful.