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Creating an AMI through a Loopback File

http://docs.amazonwebservices.com/AWSEC2/latest/DeveloperGuide/index.html?ami-via-loopback.html

This method involves doing a full operating system installation on a clean root file system, but avoids having to create a new root disk partition and file system on a physical disk. Once you have installed your operating system, the resulting image can be bundled as an AMI with the ec2-bundle-image utility.

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