I've not been able to spin up new VMs in EC2 using Foreman 1.3. My system is Ubuntu 12.04 LTS in EC2 and foreman was installed via the installer. The create host feature worked priot to upgrading to 1.3.

When I try to create a host I get the following error:

Fog error: InternalError => An internal error has occurred
/usr/share/foreman/vendor/ruby/1.8/gems/excon-0.28.0/lib/excon/middlewares/expects.rb:10:in `response_call'
/usr/share/foreman/vendor/ruby/1.8/gems/excon-0.28.0/lib/excon/middlewares/response_parser.rb:8:in `response_call'
/usr/share/foreman/vendor/ruby/1.8/gems/excon-0.28.0/lib/excon/connection.rb:361:in `response'
/usr/share/foreman/vendor/ruby/1.8/gems/excon-0.28.0/lib/excon/connection.rb:254:in `request'
/usr/share/foreman/vendor/ruby/1.8/gems/fog-1.18.0/lib/fog/xml/sax_parser_connection.rb:36:in `request'
/usr/share/foreman/vendor/ruby/1.8/gems/fog-1.18.0/lib/fog/core/deprecated/connection.rb:18:in `request'
/usr/share/foreman/vendor/ruby/1.8/gems/fog-1.18.0/lib/fog/aws/compute.rb:434:in `_request'
/usr/share/foreman/vendor/ruby/1.8/gems/fog-1.18.0/lib/fog/aws/compute.rb:429:in `request'
/usr/share/foreman/vendor/ruby/1.8/gems/fog-1.18.0/lib/fog/aws/requests/compute/run_instances.rb:121:in `run_instances'
/usr/share/foreman/vendor/ruby/1.8/gems/fog-1.18.0/lib/fog/aws/models/compute/server.rb:194:in `save'
/usr/share/foreman/vendor/ruby/1.8/gems/fog-1.18.0/lib/fog/core/collection.rb:52:in `create'
/usr/share/foreman/app/models/compute_resource.rb:126:in `create_vm'
/usr/share/foreman/app/models/compute_resources/foreman/model/ec2.rb:45:in `create_vm'
/usr/share/foreman/app/models/concerns/orchestration/compute.rb:57:in `setCompute'
/usr/share/foreman/app/models/concerns/orchestration.rb:148:in `send'
/usr/share/foreman/app/models/concerns/orchestration.rb:148:in `execute'
/usr/share/foreman/app/models/concerns/orchestration.rb:88:in `process'
/usr/share/foreman/app/models/concerns/orchestration.rb:80:in `each'
/usr/share/foreman/app/models/concerns/orchestration.rb:80:in `process'
/usr/share/foreman/app/models/concerns/orchestration.rb:18:in `on_save'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:627:in `_run__316199885__save__4__c$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:405:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:405:in `__run_callback'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:385:in `_run_save_callbacks'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:81:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:81:in `run_callbacks'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/callbacks.rb:264:in `create_or_update'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/persistence.rb:84:in `save'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/validations.rb:50:in `save'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/attribute_methods/dirty.rb:22:in `save'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/transactions.rb:259:in `save_without_type'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/transactions.rb:313:in `with_transaction_returning$
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/connection_adapters/abstract/database_statements.r$
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/transactions.rb:208:in `transaction'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/transactions.rb:311:in `with_transaction_returning$
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/transactions.rb:259:in `save_without_type'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/transactions.rb:270:in `rollback_active_record_sta$
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/transactions.rb:258:in `save_without_type'
/usr/share/foreman/app/models/concerns/foreman/sti.rb:29:in `save'
/usr/share/foreman/app/controllers/hosts_controller.rb:85:in `create'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal/implicit_render.rb:4:in `send_action'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal/implicit_render.rb:4:in `send_action'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/abstract_controller/base.rb:167:in `process_action'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal/rendering.rb:10:in `process_action'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/abstract_controller/callbacks.rb:18:in `process_action'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:527:in `_run__27127587__process_act$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:215:in `_conditional_callback_aroun$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:326:in `around'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:310:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:310:in `_callback_around_743'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:214:in `_conditional_callback_aroun$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:526:in `_run__27127587__process_act$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:215:in `_conditional_callback_aroun$
/usr/share/foreman/app/models/concerns/foreman/thread_session.rb:33:in `clear_thread'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:214:in `_conditional_callback_aroun$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:415:in `_run__27127587__process_act$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:215:in `_conditional_callback_aroun$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:326:in `around'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:310:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:310:in `_callback_around_13'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:214:in `_conditional_callback_aroun$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:414:in `_run__27127587__process_act$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:405:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:405:in `__run_callback'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:385:in `_run_process_action_callbac$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:81:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:81:in `run_callbacks'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/abstract_controller/callbacks.rb:17:in `process_action'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal/rescue.rb:29:in `process_action'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal/instrumentation.rb:30:in `process_action'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/notifications.rb:123:in `instrument'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/notifications/instrumenter.rb:20:in `instrument'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/notifications.rb:123:in `instrument'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal/instrumentation.rb:29:in `process_action'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal/params_wrapper.rb:207:in `process_action'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/railties/controller_runtime.rb:18:in `process_acti$
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/abstract_controller/base.rb:121:in `process'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/abstract_controller/rendering.rb:45:in `process'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal.rb:203:in `dispatch'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal/rack_delegation.rb:14:in `dispatch'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_controller/metal.rb:246:in `action'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/routing/route_set.rb:73:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/routing/route_set.rb:73:in `dispatch'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/routing/route_set.rb:36:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/journey-1.0.4/lib/journey/router.rb:68:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/journey-1.0.4/lib/journey/router.rb:56:in `each'
/usr/share/foreman/vendor/ruby/1.8/gems/journey-1.0.4/lib/journey/router.rb:56:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/routing/route_set.rb:608:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/apipie-rails-0.0.24/lib/apipie/static_dispatcher.rb:65:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/best_standards_support.rb:17:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/etag.rb:23:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/conditionalget.rb:35:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/head.rb:14:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/params_parser.rb:21:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/flash.rb:242:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/session/abstract/id.rb:210:in `context'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/session/abstract/id.rb:205:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/cookies.rb:341:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/query_cache.rb:64:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/activerecord-3.2.14/lib/active_record/connection_adapters/abstract/connection_pool.rb:47$
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/callbacks.rb:28:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:405:in `_run__1193688236__call__4__$
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:405:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:405:in `__run_callback'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:385:in `_run_call_callbacks'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:81:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/callbacks.rb:81:in `run_callbacks'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/callbacks.rb:27:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/remote_ip.rb:31:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/debug_exceptions.rb:16:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/show_exceptions.rb:56:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/railties-3.2.14/lib/rails/rack/logger.rb:32:in `call_app'
/usr/share/foreman/vendor/ruby/1.8/gems/railties-3.2.14/lib/rails/rack/logger.rb:16:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/tagged_logging.rb:22:in `tagged'
/usr/share/foreman/vendor/ruby/1.8/gems/railties-3.2.14/lib/rails/rack/logger.rb:16:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/request_id.rb:22:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/methodoverride.rb:21:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/runtime.rb:17:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/activesupport-3.2.14/lib/active_support/cache/strategy/local_cache.rb:72:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/lock.rb:15:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/actionpack-3.2.14/lib/action_dispatch/middleware/static.rb:63:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-cache-1.2/lib/rack/cache/context.rb:136:in `forward'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-cache-1.2/lib/rack/cache/context.rb:143:in `pass'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-cache-1.2/lib/rack/cache/context.rb:155:in `invalidate'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-cache-1.2/lib/rack/cache/context.rb:71:in `call!'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-cache-1.2/lib/rack/cache/context.rb:51:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/railties-3.2.14/lib/rails/engine.rb:484:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/railties-3.2.14/lib/rails/application.rb:231:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/railties-3.2.14/lib/rails/railtie/configurable.rb:30:in `send'
/usr/share/foreman/vendor/ruby/1.8/gems/railties-3.2.14/lib/rails/railtie/configurable.rb:30:in `method_missing'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/urlmap.rb:64:in `call'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/urlmap.rb:49:in `each'
/usr/share/foreman/vendor/ruby/1.8/gems/rack-1.4.5/lib/rack/urlmap.rb:49:in `call'
/usr/lib/ruby/1.8/phusion_passenger/rack/request_handler.rb:92:in `process_request'
/usr/lib/ruby/1.8/phusion_passenger/abstract_request_handler.rb:207:in `main_loop'
/usr/lib/ruby/1.8/phusion_passenger/rack/application_spawner.rb:118:in `run'
/usr/lib/ruby/1.8/phusion_passenger/rack/application_spawner.rb:65:in `spawn_application'
/usr/lib/ruby/1.8/phusion_passenger/utils.rb:184:in `safe_fork'
/usr/lib/ruby/1.8/phusion_passenger/rack/application_spawner.rb:58:in `spawn_application'
/usr/lib/ruby/1.8/phusion_passenger/rack/application_spawner.rb:41:in `spawn_application'
/usr/lib/ruby/1.8/phusion_passenger/spawn_manager.rb:159:in `spawn_application'
/usr/lib/ruby/1.8/phusion_passenger/spawn_manager.rb:287:in `handle_spawn_application'
/usr/lib/ruby/1.8/phusion_passenger/abstract_server.rb:352:in `__send__'
/usr/lib/ruby/1.8/phusion_passenger/abstract_server.rb:352:in `main_loop'
/usr/lib/ruby/1.8/phusion_passenger/abstract_server.rb:196:in `start_synchronously'
/usr/lib/phusion_passenger/passenger-spawn-server:61
Rolling back due to a problem: Set up compute instance test-server.ec2.internal 1 failed test-server.ec2.internalsetCompute