I believe that the erlang issue is something different entirely, so
would also like to see another bug report filed. I have experienced some
lockup/CPU drag oddness with erlang on c1.xlarge's, not just t1.micro..
but haven't had the time to debug it just yet. Matt, please post back
here with the bug # you file, or I will do so if I get around to it
soon.

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

Title:
  t1.micro instance hangs when installing java

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