I am trying to setup a Coupon Code in Magento to allow $10 (or any specific amount) off per item in the cart.
So if I have 1 item in cart I get $10 off, if I have 2 items in cart I get $20 off, etc... Can this be done?
Try Fixed amount discount as an action to apply.
Check http://www.magentocommerce.com/wiki/welcome_to_the_magento_user_s_guide/chapter_5 for more information