LUN is the logical unit number.
SCSI ID should be unique for each device. The controller should be 7 and the rest starting at 0 and going up to 7. Some SCSI types can go up to device ID 15, so the SCSI card is still 7 (for legacy support).
LUN is for say a CDROM changer that has 4 slots in it. LUN0 is the first disc, 1,2,3 are the other three.
Basically LUN's are for devices that have multiple parts. Such as a true RAID controller that plugs into a regular controller. The RAID controller has a single ID that appears to the system, but each drive in the array is assigned a LUN to address it specifically. If youre using a standard hard drive or CD drive, the LUN is always 0 since it is a single device.