Basically you don't want users to add more items to the cart if there is only one available. There's an option in your system -> settings -> edit store ->options tab, you can select to allow checkout even if out of stock. May be uncheck that?
By doing that, you'd be preventing sales to your customers while the stock only has been depleted. Keeping the sales on-going would definitely be the way to go but to be notified automatically about it. I do have an extension on the side that does this.
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