(Some familiarity with Amazon AWS is assumed.)
I have always wanted to setup a high performance Drupal on an AWS EC2. There are several advantages of running your website (or web application) on the AWS. Amazon EC2 creates and provisions virtual Linux (or Windows) servers for you and charge you an hourly rate for usage.
With AWS, it becomes easy to distribute and share the Drupal image with others. And of course it is much easier to scale and is definitely cheaper. You can have different virtual servers running the search engine, database and application servers, therefore all scaling independently of each other.
With the introduction of Micro instances and better yet, free micro instances, the barrier to entry for a new user has really dropped.
I assume you have or can create an Amazon AWS account and use their management console. These aspects are very well covered in Amazon's site and I will not get into the details of creating an account, etc. Amazon has done a great job of creating the documentation and tutorials for getting started.
I will show how to:
1. Setup a LAMP stack on Ubuntu
2. Setup Drupal on the LAMP stack
3. How to install phpmyadmin
4. Configure the database to reside in the EBS instead of the ephemeral instance storage.