This is fix-released in maverick and later (bug 615545).
The only supported release that it would be present on would be 10.04.

You reported this using ubuntu-bug on a 11.04 instance.  Are you
actually stating that you saw this bug with that ami?

Eric's suggestion does seem reasonable. The only change is that Canonical would 
have to either:
a.) make the mirrors available from outside a region 
b.) manually track announcements like 
https://forums.aws.amazon.com/ann.jspa?annID=1097 and update security groups.


** Changed in: cloud-init (Ubuntu)
       Status: Confirmed => Fix Released

** Also affects: cloud-init (Ubuntu Hardy)
   Importance: Undecided
       Status: New

** Also affects: cloud-init (Ubuntu Lucid)
   Importance: Undecided
       Status: New

** Changed in: cloud-init (Ubuntu Hardy)
   Importance: Undecided => High

** Changed in: cloud-init (Ubuntu Lucid)
   Importance: Undecided => High

** Changed in: cloud-init (Ubuntu Hardy)
       Status: New => Confirmed

** Changed in: cloud-init (Ubuntu Lucid)
       Status: New => Confirmed

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https://bugs.launchpad.net/bugs/824947

Title:
  EC2 apt repository DNS resolution on VPC instances

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