I have recently started on a PoC project wherein we are developing a small web app. The initial setup is done on a micro instance from AWS. We are on rails+mysql stack.
Just to add to the other answer. I recently had this problem myself with the Amazon micro instance (not Ubuntu). The my.cnf file is almost empty so what I did was this:
cp /etc/my.cnf /etc/my.cnf.orig
cp /usr/share/mysql/my-medium.cnf /etc/my.cnf
Edit my.cnf and enable the innodb lines if applicable. Restart mysqld.
Also the micro instance has no swap, that might be a problem..
SWAPFILE=/mnt/swapfile.swap
dd if=/dev/zero of=$SWAPFILE bs=1M count=512
mkswap $SWAPFILE
swapon $SWAPFILE
Then in /etc/rc.local add:
swapon /mnt/swapfile.swap
To save memory in ruby you might want to use ruby enterprise:
bash < <(curl -s https://raw.github.com/wayneeseguin/rvm/master/binscripts/rvm-installer)
gpasswd -a root rvm
source /etc/profile.d/rvm.sh
rvm get head
rvm reload
rvm install ree
rvm --default use ree