more info ...

./keystone -d

keystone-legacy-auth: INFO *************** keystone-legacy-auth: INFO Configuration options gathered from config file: keystone-legacy-auth: INFO /software/keystone/openstack-keystone-61148fb/etc/keystone.conf keystone-legacy-auth: INFO ================================================ keystone-legacy-auth: INFO admin_host 0.0.0.0 keystone-legacy-auth: INFO admin_port 35357 keystone-legacy-auth: INFO backends keystone.backends.sqlalchemy keystone-legacy-auth: INFO debug True keystone-legacy-auth: INFO default_store sqlite keystone-legacy-auth: INFO hash-password True keystone-legacy-auth: INFO keystone-admin-role Admin keystone-legacy-auth: INFO keystone-service-admin-role KeystoneServiceAdmin keystone-legacy-auth: INFO log_file keystone.log keystone-legacy-auth: INFO service-header-mappings { 'nova' : 'X-Server-Management-Url', 'swift' : 'X-Storage-Url', 'cdn' : 'X-CDN-Management-Url'} keystone-legacy-auth: INFO service_host 0.0.0.0 keystone-legacy-auth: INFO service_port 5000 keystone-legacy-auth: INFO verbose False keystone-legacy-auth: INFO *************** ERROR: Unable to load keystone-legacy-auth from configuration file /software/keystone/openstack-keystone-61148fb/etc/keystone.conf. Got: ImportError('No module named passlib.hash',)

apt-get doesn't work on RHEL6.

the pip install passlib worked but it still behaves the same.

I solved this by reinitializing the who;le machine and installed XCP instead of Openstack. Apparently pip is garbage that tries to attach to Twitter of all things. No Openstack, no Keystone, no pip, no Ubuntu, no problems......

I was running RHEL 6 not Ubuntu. The apt-get command doesn't really work well on RHEL. This is prime example how the whole Openstack system and it's peripheral modules are too Ubuntu-centric and not RHEL friendly. As a followup, I have dozens of VMs now up and running very well on the XCP platform. It was amazingly easy and fast to set up. I did give Openstack a try but unfortunately it's still half-baked and was a complete waste of my time.