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how to: create a small linux image for openstack?

Hi guys,

I'm trying to find a way or guide on how can we setup or prepare a qcow2 image which only less then 1gb. As we can see most of the ready cloud image is only less then 500mb. When i try to prepare image less then 1gb i always hit error saying memory or hdisk is not enough.

From my understanding, this should be able achieved. Hope you guys can share.