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I must pull foot out of mouth and change my tune. I DO use the qty discount mod above on some of my sites and it works very well.

Not to divert the thread, but thank you for nice comment. That sidebox offers several levels of discount. Once you qualify for the 5%, it promps you to add two more to get 10% and then on and on.
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I believe you can continue adding discount levels 5 at a time. But you don't need to use all of them.

If you have 7 discount levels, add 5 more and leave the last three blank.

At least thats...

You can set this up using quantity discounts.

ie: 1 - 2 = $4.00ea, 3 - 5 = $3.33 each etc...