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If I look at the prices: Extra Large $0.88 per hour
Iam wondering how much cash you are making with your website, it will be around 600 bucks/month. You can rent a few monster dedicated server boxes for that price... I asume you want it to be up 24/7?
If the data is largely static ie you're serving up data, rather than a transaction processing system, then more RAM, because more 'answers' are cached in RAM instead of being disk-bound, a notorious bottleneck for DBs.
This is still true if the system is a dedicated DB server and any (most) data processing is on another system.
I'm going to setup Master-Slave, where Master will be used only for writing (insertion/updation) and Slave for reading (multiple servers will read it to generate heavy reports). Both will be dedicated DB servers.
Therefore, what I can assume here is that I should go for more cpu for first server (as writing is greatly involved) and select more RAM for second one (where caching will help significantly).
If you can ensure that design (ie Master = insert/update/delete, slave = select) then sounds good to me.
It also means you can trim/customise the OS to DB specific params eg http://dev.mysql.com/doc/refman/5.0/en/disk-issues.html
Good luck
PS remember to ensure the NICs/cables have enough bandwidth
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