1) Canada Flat Rate Shipping Price - is there a way to set a set shipping amount ($8) for any orders made from Canada? Also - I believe that she only wants to sell to the USA and Canada.
Yes. Shipping to Canada is considered "International Shipping" by the shipping carriers. You can set a separate shipping and handling charge ONLY for International order from the shipping manager. You will first have to select which shipping carriers you want to offer and then click on the International shipping coverage and then go to "Advanced Settings" to find the shipping and handling charge for that shipping method.
Here is a video that will demonstrate this:
If you wish, we can restrict your website so that it can only be accessed by visitors in the US and Canada, you will just need to make a special request for this.
2) She needs to add a set amount for tax for JUST the state of Colorado. If someone orders from somewhere that is NOT in Colorado, there is no tax.
Taxes will only be charged for the areas that you define from the menu at "store" -> "tax rates". If someone purchases from an area that you have not defined, then no taxes will be charged. Be sure to run some test transactions to make sure everything is setup properly!
So we have a client that wants to have a set shipping price for only certain products, and a different rate for other products. Is it possible to set a shipping rate for one product different from the shipping rate of another product?
For the situation that you describe, we recommend including the shipping price in the sales price of the item. Then you can advertise "Free Shipping" on your website. Offering free shipping has been shown to increase sales on your website. Here are 2 articles that explain this marketing strategy further: