ANy ideas how to address this issue ....I am on ubuntu 10.04 on amazon ec2 here is the image
To me that's just a bug or fake warning from the interface you are looking at. It says that the problem is critical because you have no swap space available and ironically it says that 100% is free because 0% is used; BUT the fact is that it seems that you haven't swap at all.
Do you really need swap? if not, you can ignore that warning.