How much time it takes to install II7 on Windows Server 2008 via Amazon EC2.
closed as not constructive by HopelessN00b, mdpc, Magellan, EEAA, Ward Nov 7 '12 at 6:54
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The issue appears to be present because of the memory limits of the small and micro instances.
Try changing the Virtual Memory Page File from the fixed 256 MB preset size to 'Automatically manage paging file size for all drives'.
This allowed the installation to go through for me.
Here is a link on how to do this for Windows Server 2008: