I run into this with: apt-get install ec2-api-tools
You may want to let Amazon know.  It's a bad user experience to hang at the EC2 
tools installation.
Until I saw this bug report, I thought this was an example of the t1.micro 
instance CPU throttling:
http://docs.amazonwebservices.com/AWSEC2/latest/UserGuide/index.html?concepts_micro_instances.html

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https://bugs.launchpad.net/bugs/634487

Title:
  t1.micro instance hangs when installing java

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