I installed a fresh AMI for EC2 (http://aws.amazon.com/amis/Microsoft/5147732567196848) and have installed Web deploy 2.1 on it.
The web deploy 2.1 service is runnin
I contact Microsoft directly about this problem and they had an immediate answer for me.
From MS guy:
It looks like your Web Management Service not contactable. I have seen this before when the certificate for the service is invalid. Can you run the attached script on your server?
Does this fix the problem?
The script he is referring to is available here