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It's still not entirely clear to me where you are seeing this failure. Here are the steps I've used to successfully boot an instance using the CentOS 7 minimal ISO:

  1. Download the image:

  2. Upload the image to glance:

    glance image-create --file CentOS-7.0-1406-x86_64-Minimal.iso \
      --name centos-7-x86_64_minimal_iso \
      --container-format bare --disk-format iso --is-public true
  3. Boot a Nova instance from this image:

    nova boot --image centos-7-x86_64_minimal_iso --flavor m1.small centos

This boots me into the CentOS installer, but I am unable to install at this point because the instance has no associated disk image. However, if I create a volume:

$ cinder create --display-name centos-7-minimal 10

And then attach that to the instance when I boot:

$ nova boot --flavor m1.small --image centos-7-x86_64_minimal_iso  \
  --block-device source=volume,id=103f7d3d-f453-45ea-9798-84f25e4cf17a,dest=volume,bus=virtio \

Then I can (a) boot into the installer and (b) install CentOS onto the attached volume. Once the installation is finished, I can delete the instance and then boot directly from the volume:

$ cinder set-bootable centos-7-minimal true
$ cinder list
|                  ID                  |   Status  |   Display Name   |...
| 103f7d3d-f453-45ea-9798-84f25e4cf17a | available | centos-7-minimal |...
$ nova boot --flavor m1.small \
  --boot-volume 103f7d3d-f453-45ea-9798-84f25e4cf17a centos

And the instance boots up to a login: prompt (and I can log in using the password I selected in the installer).

I could transform this volume into a Glance image using the cinder upload-to-image command.