I found out how to do it, and it is really simple.
One of the features in shipping options just add an amount, say $15 and select (default) Add this amount to the shipping total.
All products can now have zero shipping cost applied to them and add a small shipping and handling fee if you want to make up for multiples of several items.
The first item will have $15 for shipping plus whatever handling fee you chose. The second and following items will only increase the shipping cost by whatever handling fee you attached to those items.
It is exactly what I wanted, don't know why it was so hard to find and why others didn't know about it.
Now this make this shopping cart really easy to use, just one very big problem left for Australians, and that is that the tax must show on the final amount, and also Tax Invoice should be printed on the documents with our Australian Business Number.

I'm glad you found a way for shipping to work for you, but in my case I would want to decrease shipping cost to my customer after their total reaches a certain amount(say $50) and I don't see a way to do that. So they would pay $8 shipping on an order up to $50, over $50 would be free. Also, some items would have to be able to be calculated by weight. If an item is heavy obviously you would want to recoup at least some of this cost from your customer. It seems as if the Devs started thinking this way(why else would they give you a field to put in an items weight?) but then decided against it.
I hope we see an upgrade soon that addresses taxes and shipping.

Yeah, no kidding.. when I saw the weight field I thought this would be great... since about 1/3 of my sales are International I can figure exact shipping..... as we all know, that is not the case

One post said a "Pro version" with this kind of functionality plus inventory control would be out by end of 1st quarter... then another post said there was no way it'd be out by the end of March. I don't think I can wait, especially with no concrete launch date... probably going to go with the Go Daddy $50 per month set up which will also allow me to download all of my transactions into Quickbooks... I didn't want to spend that much per month, but as it is now, the lack of functionality in this software is going to cost me way more in profits than $50 a month.