I have amazon VPC set through wizard as \"public only network\", so all my instances are in public subnet.
Instances within VPC that have Elastic IP assigned connect
Q. How do instances without EIPs access the Internet?
Instances without EIPs can access the Internet in one of two ways Instances without EIPs can route their traffic through a NAT instance to access the Internet. These instances use the EIP of the NAT instance to traverse the Internet. The NAT instance allows outbound communication but doesn’t enable machines on the Internet to initiate a connection to the privately addressed machines using NAT, and
http://aws.amazon.com/vpc/faqs/
You can find detailed instructions on how to setup a nat instance here: http://docs.aws.amazon.com/AmazonVPC/latest/UserGuide/VPC_NAT_Instance.html

It appears that the only way to get outside from instances that don't have Elastic IP is:
So, just adding NAT is not enough. Instances should be stopped and moved to another IP from another subnet.
You can do it on any instance in your VPC, that has EIP. There few instructions that i described here should help you. BTW: don't forget disable source/dest. check
They have a relatively new product called NAT gateway that does exactly this, creates a managed NAT instance at the edge of your pub/private subnets.
This works for me with :
To do :
root@gw:~# sysctl -q -w net.ipv4.ip_forward=1 net.ipv4.conf.eth0.send_redirects=0
root@gw:~# iptables -t nat -C POSTROUTING -o eth0 -s 172.20.222.0/24 -j MASQUERADE 2> /dev/null || iptables -t nat -A POSTROUTING -o eth0 -s 172.20.222.0/24 -j MASQUERADE
if it works, add this 2 lines in /etc/rc.local