I did follow the Kilo installation steps as it's written, My environment is very simple i Have one Controller node (Keystone,Glance,Horizon,Neutron) and one compute Node (nova-Compute) ,all the servers are working fine:

[root@controller nova]# neutron agent-list
+--------------------------------------+--------------------+------------+-------+----------------+---------------------------+
| id                                   | agent_type         | host       | alive | admin_state_up | binary                    |
+--------------------------------------+--------------------+------------+-------+----------------+---------------------------+
| 29b58e99-0db2-4f21-86d7-dee99b2d5ac7 | Linux bridge agent | controller | :-)   | True           | neutron-linuxbridge-agent |
| 3a519085-fedc-49fd-91ba-5cf4c873423e | Linux bridge agent | compute    | :-)   | True           | neutron-linuxbridge-agent |
| 5996325e-1f99-4381-b374-5604d12d33a4 | Metadata agent     | controller | :-)   | True           | neutron-metadata-agent    |
| dded77cc-c21a-46b3-bc3b-63d0b729d683 | DHCP agent         | controller | :-)   | True           | neutron-dhcp-agent        |
+--------------------------------------+--------------------+------------+-------+----------------+---------------------------+
[root@controller nova]# nova service-list
+----+------------------+------------+----------+---------+-------+----------------------------+-----------------+
| Id | Binary           | Host       | Zone     | Status  | State | Updated_at                 | Disabled Reason |
+----+------------------+------------+----------+---------+-------+----------------------------+-----------------+
| 1  | nova-consoleauth | controller | internal | enabled | up    | 2016-04-27T12:29:44.000000 | -               |
| 2  | nova-conductor   | controller | internal | enabled | up    | 2016-04-27T12:29:43.000000 | -               |
| 3  | nova-scheduler   | controller | internal | enabled | up    | 2016-04-27T12:29:43.000000 | -               |
| 4  | nova-cert        | controller | internal | enabled | up    | 2016-04-27T12:29:44.000000 | -               |
| 5  | nova-compute     | compute    | nova     | enabled | up    | 2016-04-27T12:29:49.000000 | -               |
+----+------------------+------------+----------+---------+-------+----------------------------+-----------------+
[root@controller nova]# nova image-list
+--------------------------------------+---------------------+--------+--------+
| ID                                   | Name                | Status | Server |
+--------------------------------------+---------------------+--------+--------+
| d791ed49-f300-4d8f-9528-e1c26fb44780 | cirros-0.3.4-x86_64 | ACTIVE |        |
+--------------------------------------+---------------------+--------+--------+

But whenever I run the command to boot the VM it's keeps failing with the below error:

ERROR (ClientException): The server has either erred or is incapable of performing the requested operation. (HTTP 500) (Request-ID: req-fe8b54f1-96ea-4c35-8e77-62425ace064c)

If run the command without putting the nic option , the command will complete successfully but the machine will remain at the error state. I am using Centos 7.

Can anyone help with this.