For the past week, I\'ve been playing with the Rubber gem and can\'t seem to get it to work. I\'ve decided it would be easier just to manually set up my EC2 instance. The pr
chantheman gave a great tutorial if you want to do this manually. If you are looking for alternatives, you shall consider using a third-party solution like cloud management platforms, which make the setup of an EC2 instance and the deployment of applications easier. RightScale, which was mentioned earlier as an AMI provider in chantheman's tutorial, is one of them, but you can have a look at enStratus and Scalr as well (disclaimer: I work there). You'll need to give them your AWS credentials to allow them to make API calls on your behalf.
Cloud management softwares will provide some pre-configured AMIs (at Scalr, we call them roles) and offer an application deployment framework (we wrote a blogpost about this http://scalr.net/blog/announcements/deployments/). You will thus perform step 2-10 more quickly.
If you are tight on budget, RightScale and enStratus have a free account whereas Scalr is open-source and available under the Apache 2 license.