I have read a couple threads on this but still can't get this scenario to work - Here is what I want to do:

We have two types of product in our store - free shipping and regular shipping.
I have the UPS & USPS modules installed.
I have two zones created - 48 States & Outside 48 States (AK, PR, HI and all other countries)

In the freeshipper module I have the 48 States zone selected - so free shipping is only offered in those states - this works great.

In UPS I have no zone selected - this works for regular shipping items - both domestic and international orders.

I also have the USPS module with the outside 48 states zone selected - again this works for regular shipping items.

What I am trying to get is that the UPS and USPS modules show up when the customer selected a free shipping item but is outside the 48 states - right now I get the "Sorry, we are not shipping to your region at this time." message.

This seems to be a pretty straight forward problem, but I must have missed something.

I have version 1.3.5 - Any help, tips or guidance would be appriciated!