This extension would work with Virtuemart 12 , .13 and .14 installed on Joomla 1.5 and Joomla1.0.15. Features: This extension allows you to exclude products and ship to countries from shipping calculation.
If a product is marked as excluded then it will not be included for shipping calculation. This is not an installable plug-in or module, this is a script that requires FTP and simple file edits. With this you can manually exclude specific products from having shipping fees. 

Install is not with the joomla installer, you need to edit files and know how to run a sql query. 
Here is a video on how to run the sql.sql file included in the download.
http://www.joomlacache.com/video/howtouseSQLinVm_shipping.swf

Once installed you will find the exclude shipping menu item on the left menu.


how this module works

If a product is selected as "Free shipping" product, shipping will be excluded for that product.
So shipping is free for that product.
If it is purchased with other normal products, shipping will be calculated for the other products alone.

And this would not override the virtuemart's default setting called
"Minimum amount for free shipping",  As usual when a the cart amount is greater than the minimum, the customer would get the free shipping.

And if the product is selected for "No Free shipping" and it is purchased, then that product would not be given free shipping even it is purchased with a greater value than the minimum amount.
If that product is purchased with other normal products, only the normal products total cost is taken in to account for FREE shipping.

If a country is selected for "No Free shipping", then if a customer purchases any products (Free or Non-Free or Cart_amount > minimum_for_free_shipping), then he will never be given free shipping.

Screenshots:

Menu Location

Exclude products and ship to countries

Updated 3-3-2010: fixed selection issue for products
NOTE: IF YOU HAVE CUSTOMIZED ANY PART OF VIRTUEMART, THIS WILL NEED CUSTOM WORK ALSO AS IT OVER WRITES YOUR CORE FILES AND IS BASED ON VIRTUEMART BEING INSTALLED IN DEFAULT UNALTERED STATUS. 
Joomlacache will assist on the install and making sure it works ONLY for default, unaltered installations of virtuemart.

For a fee, The extension can be customized for your customized version of virtuemart.



NEVER INSTALL ON A LIVE SITE: ALWAYS TEST ON A DEV SITE FIRST

We built each of our components for our internal use based on our clients and our specifications. After many requests, we prepared releases of each component to the public! Our components are sold AS IS. Any features and functionality that are not currently part of these components that you need can be developed for an extra fee or as these are all open source, you can use the components as a basis to build your version on.

Often our customers come back to us and want features and functionality added that is not currently built into the components. Although we did our best, and we are constantly developing our components, there is no way to foresee what everyone of you want, need, or expect. A function that you want is not an omission or a bug. The components work AS IS based on the original specs. Refunds are not given because you want a feature or function that is not included, and we do not do further development specifically to meet your specs for free, as we need to pay staff also.

We use all of these extensions on our own sites and our clients sites, so we find bugs before any of you do, but, if you find bugs (and a bug is not a feature or function that you want but is not available), please let us know about them as we are constantly working on improving our components for their next releases.