"pkg image-update" results in updating kernel and ramdisk and is not allowed in EC2 so it is recommended not to run such commands which may make your instance non-compatible with  EC2 environment. More details including re-bundling instruction can be found in the Getting Started Guide.
Comments:

With 'pkg image-update' not working to update the OpenSolaris AMI to 2008.11, is there a time frame for making a 2008.11 AMI available?

Posted by Guido Kollerie on December 26, 2008 at 09:33 PM PST #

Although, we can't specify the exact date, you can expect the OpenSolaris 2008.11 AMI to be released in the very near future. Stay tuned.

Posted by Prateek Parekh on December 26, 2008 at 10:19 PM PST #

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