1. You must wait for the instance to initialize before configuring the stack to Scale In. You may determine when the instances are ready by looking at the state of the Load Balancer. Navigate to the EC2 Load Balancers window and select the LansaStack Load Balancer and the Instances tab. You will see that the Web Server instance is OutOfService. Until it is InService, the Load Balancer will not use it. It takes something like 20 minutes to fully initialize the demonstration application. Your own application may vary greatly from this.
2. When all 3 instances have a Status of In Service then you are ready for the next step.