I am having trouble connecting to an Amazon Elastic Cloud Computer Instance via a browser. I attempted going to ********.compute-1.amazonaws.c
I had also faced similar issue with ec2 micro instance. I was using Red-Hat AMI. Despite of opening ports 8081 in security group, I was not able to a telnet to the host port. Disabling the iptable did the trick for me:
sudo /etc/init.d/iptables stop