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What I've done to accomplish this task is to play with the image/volume and block storage services, via the Dashboard (sorry, am a little lazy to use the CLI right now): try this:

  1. Upload your ISO image in ISO format
  2. Create a Volume with Size according to the installation of your ISO image, be sure to mark it as bootable
  3. Launch an instance from the ISO image, don't worry about the Flavor, just choose o create one that lets you build the instance.
  4. BEFORE starting your installation of your ISO image, attach the volume you created on step 2 to this instance
  5. Proceed with installation in the instance, be sure to identify the volume and install your distro or OS there.
  6. Once you have finished the installation, stop the instance, detach the volume and you can safely delete the Instance
  7. Go to Volumes, select the one you created and choose "Upload to Images"
  8. Launch your new installed OS or Distro from the Image you've just created!

Hope this helps somebody :)