It s not just an allocated vs used space issue. With EBS you are also paying for I/O ops while the volume is mounted.
I am trying to do the same thing -- migrate an EBS-backed instance to an S3-backed instance. Other threads here on SO state that this can t be done, but a response to an AWS forum post by Eric Hammond suggests that there is hope:
Using the concepts of swapping out a boot disk in a running EC2 instance as described in the following thread
http:// developer.amazonwebservices.com/connect/thread.jspa?threadID=42437
you might be able to create an EBS volume in the new region with a copy of the raw bits from the old region s volume, then swap the new volume into a stopped Windows instance in the new region.
Once that s working, normal AMI creation from the running instance should be possible
Not for the timid, but if it s important you might be able to find an EC2 Windows expert who can help with the steps.
Not exactly definitive, but Eric knows what he s talking about, so if it s important enough to you you can give it a try.