When setting up the SC there is an option to add the weight. I have been told that this software and ups can not be tied together at this time. However since the weight is one of the options does that mean I can set it to figure the shipping by the weight? Our products weights vary a great deal and the size itself doesn't. Therefore it is a bit difficult to figure shipping cost per item instead of per pound.

Weight based shipping is actually one of the features found in the Pro version.