I'm attaching a snippit from /var/log/eucalyptus/cloud-error.log, that
occurs when you run the failing euca-run-instances command above.
** Changed in: eucalyptus (Ubuntu Karmic)
Status: Invalid => Confirmed
** Changed in: eucalyptus (Ubuntu Karmic)
Milestone: None => karmic-updates
** Attachment added: "cloud-error.log after euca-run-instances error"
http://launchpadlibrarian.net/34498784/eucalyptus-cloud-error.log
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User data is not base64 decoded before being presented to the instance
https://bugs.launchpad.net/bugs/461156
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