My order finally went through and the $7 coupon was no longer applied and I was charged full amount. I e-mail them (hit reply on my order confirmation), a cs person e-mailed back within minutes and explained that the coupon was not valid in conjunction with the free shipping, I asked her to either apply the coupon or cancel my order, she cancelled the other (again, within minutes) and sent me the cancellation confirmation.
(I hate wasting my time. It's like Cyber Monday on AmericanGirl.com all over again.)
From C.S. e-mail:
"Thank you for contacting us. We are very sorry but our free shippingoffer is unable to be combined with any other promotional offers. Thisis why your coupon was unable to be applied. We apologize for anydisappointment this may cause. If you have any further questions,please feel free to contact us."