Probably you need to create qcow2 image out of iso image and then use that 
qcow2 to create VMs from Openstack.
Follow the instructions similar to this:
http://docs.openstack.org/image-guide/content/ubuntu-image.html


From: Narayanan, Krishnaprasad [mailto:naray...@uni-mainz.de]
Sent: Thursday, February 06, 2014 7:19 AM
To: openstack@lists.openstack.org
Subject: [Openstack] Error while booting VM

Hallo all,

Can I seek help for the problem described below?

I have a VM running Ubuntu 12.04 in my OpenStack cloud and when it boots, I get 
an error message that says "Error: invalid magic number, error: You need to 
load the kernel first. Press any key to continue".

Can I know how to make the VM boot?

Thanks,
Krishnaprasad


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