It seems to have worked out great.
I just replaced $item_total_shipping += $item * $item; with
if ($item > 1)
{
$item_total_shipping += 0;
}
else
{
$item_total_shipping += $item * $item;
}
Now whenever someone buys > 1 product, their shipping is free.
**I also had to make the base shipping 0.00 and use the individual buy buttons to add the shipping fee.
Thank you for your help.