Amazon measures their CPU allotment in terms of virtual cores and EC2 Compute Units. EC2 Compute Units are defined as:
The amount of CPU that is allocated to a particular instance is expressed in terms of these EC2 Compute Units. We use several benchmarks and tests to manage the consistency and predictability of the performance from an EC2 Compute Unit. One EC2 Compute Unit provides the equivalent CPU capacity of a 1.0-1.2 GHz 2007 Opteron or 2007 Xeon processor. This is also the equivalent to an early-2006 1.7 GHz Xeon processor referenced in our original documentation.
My question is, say I have a "Large Instance" which comes with "4 EC2 Compute Units (2 virtual cores with 2 EC2 Compute Units each)". Does this mean I essentially have 4 cores in a logical sense? Would I want to spawn 4 CPU-bound threads? Or are the compute units simply a measure of power, and I have 2 cores?
Also, given the scalability of the servers, would it be better to double the computing power of a single box and host the database and server on the same box? Or should I have 2 seperate, weaker boxes?