Why can't I bind an instance from the Amazon AWS Management Console?
When I select the EC2 executable instance and click the dropdown menu, the option to merge the image into an S3 bucket is grayed out. Why should it be?
See it here: http://skitch.com/eoligarry/dnr7n/aws-management-console
I am registered for S3 and this is not a Windows instance.
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Imaging (as well as stopping / restarting) is only possible for EBS-based AMIs, not for instance images that are loaded from local and non-persistent storage. Console merging is only possible for Windows machines that are instances of an instance (don't remember why this has something to do with AMI tools).
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