Issues with how this cart displays taxes

[Lindsayanng]

Ok, I have read a few posts about this issue but all of the steps are for 1.3 and I have 1.4 which apparently is very different in this area.

The goal:
Tax is only added (by law) to states where the product ships from. I only want tax added after the customer enters their shipping info. and they are from CT or NC
All product pages display price with no reference to tax
Tax is a separate line item under "sub total"
Shipping costs are NOT taxable

So essentially the checkout should look like this:

1 ipod shuffle 100.00
------------------------------------
sub total 100.00
CT sales tax 6% 6.00
Shipping 10.00
------------------------------------
Total 116.00



So far I have set up taxes - one called US-CT 6% and one called US-NC 5% with the proper rate. Then I made a tax rule called "WAREHOUSE LOCATIONS" where I added CT 6% and NC 5% to it.

Then on the product page I added that rule as the tax. The issue right now is that it is now displaying any references to the "tax incl." or "tax excl." because I changed the setting in the groups to exclude tax, but now I am logged in with a CT address and it is not adding the proper tax.

Also, the checkout is not really exactly as I have configured above.

thanks in advance for any help. My test site can be seen here:
http://bscdeveloper.com/hss/