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Currently we don't know why the instance creation fails. You can refer the following link and troubleshoot the instance creation issue.

http://virtual2privatecloud.com/2013/11/openstack-nova-instance-creation-fails-troubleshoot/

post this we can see whether neutron is playing role. If you need more help do ping me.

It is not neutron issue. Currently we don't know why the instance creation fails. You can refer the following link and troubleshoot the instance creation issue.

http://virtual2privatecloud.com/2013/11/openstack-nova-instance-creation-fails-troubleshoot/

post this we can see whether neutron is playing role. If you need more help do ping me.