The build of 12.04 cloud-images are now adding the 'GRUB_RECORDFAIL_TIMEOUT=0' 
to /etc/default/grub [1].
However, at the moment this will have no affect.  For this problem to be 
completely fixed, we'll also:
 a.) need bug 669481 backported to 12.04, and through -proposed
 b.) need a new official cloud image released

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[1] 
http://bazaar.launchpad.net/~ubuntu-on-ec2/vmbuilder/automated-ec2-builds/revision/499

** Changed in: Ubuntu Precise
       Status: In Progress => Fix Committed

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https://bugs.launchpad.net/bugs/1035279

Title:
  instance hangs at grub prompt after reboot followed by euca-reboot-
  instances

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