I think I found the statement that sets the weight of each package to the "Enter the Maximum Package Weight you will ship"
PHP Code:
if ($shipping_weight > SHIPPING_MAX_WEIGHT) { // Split into many boxes
$shipping_num_boxes = ceil($shipping_weight/SHIPPING_MAX_WEIGHT);
$shipping_weight = $shipping_weight/$shipping_num_boxes;
}
I think that if SHIPPING_MAX_WEIGHT is changed to the number of items in the cart then it should just calculate shipping on each item in the cart.
Now I just need to figure out how to get the number of items in the cart into here, so far unsuccessful. (in includes\classes\shipping.php)