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A little bit of freshing up on NAT helps, this did the magic for me

iptables -t nat -A POSTROUTING -o br100 -j MASQUERADE

iptables -t nat -A POSTROUTING -o eth2 -j MASQUERADE

also had to delete nova-network and recreate it to see --dns1 and --dns2. This flat bridge setup would cause bottlenecks for the instances, I look forward to Neutron support to XenServer 6.5.

Thanks for the up vote.