I am new to Magento and think it's pretty awesome. We are on v1.7 (I know there are updates to install) but I think the problem I am having is probably pretty basic, I just can't figure it out. We have Discounts and Shopping Cart Price rules that work on our current site, and I simply want to add a Free Gift coupon code but its driving me nuts!! I have checked the settings at least 10x and keep getting a "Cannot Apply the Coupon Code" error. I did a basic search of the forum and didn't find an answer that works for my particular issue.
Assistance is greatly appreciated!
It might be easier to understand what's wrong with the settings if you posted them here. Now it's hard to conclude why your coupon code wouldn't work.
As an alternative, you can try this module - Auto Add Promo Items, it does what you need with r without a coupon code.