The folks at ActiveState have cooked up an ActivePython AMI to make it easy for you to build and deploy web application written in Python.You can get started in minutes without having to download, install, or configure anything.
The AMI is based on the 64-bit version of Ubuntu and includes MySQL, SQLite, Apache, ActivePython, Django, Memcached, Nginx, and a lot of other useful components. You can run the AMI on the Micro, Large, and Extra Large instance types.
They have put together a nice suite of resources around the AMI including a tutorial (Building a Python-Centric Web Server in the Cloud) and a set of Best Practice Notes on Cloud Computing With Python.
Check it out, and let me know what you think!