In order to set free shipping with a coupon go to the "Manage Coupons" under the "Admin Menu". Under "Coupon Shipping Amount" enter a dollar amount to charge for shipping and handling that will apply to the product when a user enters a valid coupon in the cart. The coupon shipping amount will override the normal shipping cost for the product. If multiple items are in the cart the coupon shipping amount will only apply to the selected product coupon. Other items in the cart will be charged the normal shipping amount. If zero is entered in the coupon shipping amount field then the free shipping will be given when a valid coupon is entered.

Kevin