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I need to be able to apply 20% off just the non exclusion items in the cart. Can someone please share their knowledge on how to set this up.

My Coupon Description: 20% OFF PURCHASE with Coupon Code. Offer valid from Date through Date. One-time code use per customer account. Not valid on sale items, gift cards, (Specific Brand Here). Cannot be used with other offers, discounts or promo codes.

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You can probably set a new category for specific items on which you want to give discount just for backend purpose.

After that all the other requirements mentioned can be done from the magento price rules options

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