I'm trying to find out if anyone has successfully created Virtual IP's in Amazon's EC2 cloud. I need to set up some load balancing but without Virtual IP's I can't see how I could handle failover scenarios. I would be left with a single point of failure.
You can't use virtual IPs in the Amazon cloud. The nodes are fundamentally unstable: over any significant period of time they are not guaranteed to stay up.
Instead, you make sure your data is retained by keeping it on EBS volumes or S3, use Elastic Load Balancing for fault tolerance if a node goes down, and Cloud Watch to automatically recreate nodes when they fail.
Cloud computing just isn't the same as regular computing if you go with Infrastructure-as-a-Service. If you don't want to use these products and work at this level, you can always develop apps using services like Google AppEngine or Elastic Beanstalk.