I got a work around in place for bug 697493, and 20110107.1 builds are in the 
process of publishing.
I tested:
  eu-west-1 ami-c77c48b3 canonical ubuntu-natty-daily-i386-server-20110107.1
It contains linux-image-2.6.37-12-virtual .

So we're still broken with -12.

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https://bugs.launchpad.net/bugs/699828

Title:
  natty 2.6.37-11-virtual doesn't boot on EC2 in 32bits

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