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Coupons by product / item don't seem to work on the 4.2 and 4.3 releases
Last updated: 02/08/2012
When setting up a coupon or discount tied to a specific product, make sure you fill in values for these fields:
Min Order Max Order Max Uses
Don't just leave them at '0' - put positive numbers in there, and suddenly it works. I don't know why it's coded this way, but that's what you need to do.