This is fixed in 0.5.15-0ubuntu1 . cloud-init on install will now fix
/dev/sda2 or /dev/sdb entries in /etc/fstab to mark them 'nobootwait'.
Additionally, cloud-init will *write* entries for ephemeral0 with
'nobootwait'.
** Changed in: cloud-init (Ubuntu Maverick)
Status: Confirmed => Fix Released
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t1.micro EC2 instances hang on reboot
https://bugs.launchpad.net/bugs/634102
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