also happening to me on a m3.medium
not wanting to compile a custom kernel version the only way of getting rid of 
these annoying messages was adding to /etc/rc.local:

cat /sys/devices/system/xen_memory/xen_memory0/info/current_kb >
/sys/devices/system/xen_memory/xen_memory0/target_kb

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https://bugs.launchpad.net/bugs/1304001

Title:
   xen:balloon errors in 14.04 beta

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