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Unable to boot VM created from ISO - storage issue

When we launch an openstack instance from ISO, it succeeds. But when we open remote console to the newly created instance, it shows RHEL install wizard. On storage device selection page, to actually extract ISO contents, it fails with error "no drive found". Though we have given 20/40GB space to new instance, it fails to find that disk given to VM. We tried 2 options (boot from image & boot from image create new volume), both failed with same msg Difference between the two options is -- boot from image - ISO is given as a CD/DVD drive to VM. boot from image (create new volume) -- ISO is mounted on the new cinder volume attached to KVM host In both cases, ISO image is found, but to layout that image it can't find local 20/40GB drive that we have given to new instance