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After dropping the table of keystone,re-create it,grant all privileges to all and run the db_sync command. If it is running fine, instead of adding the users,tenants and roles manually, create a file say in your user account containing the bash script described in very correctly with no errors and run it using ./ after changing it's permissions if necessary. Please do make sure that your environment variables are set or write them in .bashrc file and reboot the system so that the environment variables are loaded in each login. For me, it worked when I faced the same problem when installing openstack grizzly on ubuntu 13.04