instance stuck in building nova_key

modified nova.conf, removed database & make sure host can boot KVM gust, reboot to get setup db from scratch couple times. Now I am always getting instance in launching state and I can't spot any error from logs. Checked rabbitmqctl list_queues, all 0. I suspect it is network setup, any hint, hint? Thanks

nova.conf and logs snips are attached, ,
$ euca-describe-instances
RESERVATION r-gtdlwqtm RAS default
INSTANCE i-00000001 ami-2b1b4131 10.0.0.2 10.0.0.2 launching mykey (RAS, stocky) 0 m1.tiny 2011-05-18T22:44:51Z nova

instance is created by following http://wiki.openstack.org/RunningNova using ttylinux test image

With ./bin/nova-manage network create 10.0.0.0/8 3 16
$ cat bin/nova.conf
--network_manager=nova.network.manager.FlatManager
--use_ipv6=false
#--dhcpbridge_flagfile=/home/fred/open/nova/bin/nova.conf
#--dhcpbridge=nova-dhcpbridge
--verbose
--s3_host=192.168.0.14
--cc_host=192.168.0.14
--ec2_url=http://192.168.0.14:8773/services/Cloud
--fixed_range=10.0.0.0/12
--network_size=48
--routing_source_ip=192.168.0.14
--verbose
--sql_connection=mysql://root:nova@localhost/nova
--lock_path=/tmp
--auth_driver=nova.auth.dbdriver.DbDriver

Compute.log --
2011-05-18 15:44:52,252 DEBUG nova.rpc [-] received {u'_context_request_id': u'-GBWLO580A36T5HQ3WLO', u'_context_read_deleted': False, u'args': {u'instance_id': 1, u'injected_files': None, u'availability_zone': None}, u'_context_is_admin': True, u'_context_timestamp': u'2011-05-18T22:44:51Z', u'_context_user': u'fredy', u'method': u'run_instance', u'_context_project': u'RAS', u'_context_remote_address': u'192.168.0.14'} from (pid=2261) _receive /home/fred/open/nova/nova/rpc.py:167
2011-05-18 15:44:52,252 DEBUG nova.rpc [-] unpacked context: {'timestamp': u'2011-05-18T22:44:51Z', 'remote_address': u'192.168.0.14', 'project': u'RAS', 'is_admin': True, 'user': u'fredy', 'request_id': u'-GBWLO580A36T5HQ3WLO', 'read_deleted': False} from (pid=2261) _unpack_context /home/fred/open/nova/nova/rpc.py:331
2011-05-18 15:44:52,299 AUDIT nova.compute.manager [-GBWLO580A36T5HQ3WLO fredy RAS] instance 1: starting...
2011-05-18 15:44:52,299 DEBUG nova.compute.manager [-GBWLO580A36T5HQ3WLO fredy RAS] host stocky: lauched on stocky... from (pid=2261) run_instance /home/fred/open/nova/nova/compute/manager.py:205
2011-05-18 15:44:52,385 DEBUG nova.rpc [-] Making asynchronous call on network ... from (pid=2261) call /home/fred/open/nova/nova/rpc.py:350
2011-05-18 15:44:52,385 DEBUG nova.rpc [-] MSG_ID is da3c661a6a4f43539a0014e6677b383d from (pid=2261) call /home/fred/open/nova/nova/rpc.py:353
2011-05-18 15:44:52,687 DEBUG nova.rpc [-] Making asynchronous call on network.stocky ... from (pid=2261) call /home/fred/open/nova/nova/rpc.py:350
2011-05-18 15:44:52,687 DEBUG nova.rpc [-] MSG_ID is cc2514f2e0c14064b0a188f8fc29c08b from (pid=2261) call /home/fred/open/nova/nova/rpc.py:353
2011-05-18 15:44:53,086 DEBUG nova.compute.manager [-GBWLO580A36T5HQ3WLO fredy RAS] allocated fixed IP stocky: from (pid=2261) run_instance /home/fred/open/nova/nova/compute/manager.py:229
2011-05-18 15:44:53,136 DEBUG nova.compute.manager [-GBWLO580A36T5HQ3WLO fredy RAS] set Spawning stocky: from (pid=2261) run_instance /home/fred/open/nova/nova/compute/manager.py:240
2011-05-18 15:44:53,137 DEBUG nova.virt.libvirt_conn [-] instance instance-00000001: starting toXML method from (pid=2261) to_xml /home/fred/open/nova/nova/virt/libvirt_conn.py:996
2011-05-18 15:44:53,219 DEBUG nova.virt.libvirt_conn [-] instance instance-00000001: finished toXML method from (pid=2261) to_xml /home/fred/open/nova/nova/virt/libvirt_conn.py:1041
2011-05-18 15:44:53,219 DEBUG nova.virt.libvirt_conn [-] instance instance-00000001: with <domain type='kvm'>
    <name>instance-00000001</name>
    <memory>524288</memory>
    <os>
            <type>hvm</type>
            <kernel>/home/fred/open/nova/nova/..//instances/instance-00000001/kernel</kernel>
                <cmdline>root=/dev/vda console=ttyS0</cmdline>
                <initrd>/home/fred/open/nova/nova/..//instances/instance-00000001/ramdisk</initrd>

    </os>
    <features>
        <acpi/>
    </features>
    <vcpu>1</vcpu>
    <devices>
        <disk type='file'>
            <driver type='qcow2'/>
            <source file='/home/fred/open/nova/nova/..//instances/instance-00000001/disk'/>
            <target dev='vda' bus='virtio'/>
        </disk>

        <interface type='bridge'>
            <source bridge='br100'/>
            <mac address='02:16:3e:73:dd:46'/>
            <!-- <model type='virtio'/> CANT RUN virtio network right now -->
            <filterref filter="nova-instance-instance-00000001-02163e73dd46">
                <parameter name="IP" value="10.0.0.2" />
                <parameter name="DHCPSERVER" value="10.0.0.1" />
            </filterref>
        </interface>
        <!-- The order is significant here. File must be defined first -->
        <serial type="file">
            <source path='/home/fred/open/nova/nova/..//instances/instance-00000001/console.log'/>
            <target port='1'/>
        </serial>

        <console type='pty' tty='/dev/pts/2'>
            <source path='/dev/pts/2'/>
            <target port='0'/>
        </console>

        <serial type='pty'>
            <source path='/dev/pts/2'/>
            <target port='0'/>
        </serial>

        <graphics type='vnc' port='-1' autoport='yes' keymap='en-us' listen='0.0.0.0'/>
    </devices>
</domain>
 from (pid=2261) to_xml /home/fred/open/nova/nova/virt/libvirt_conn.py:1043
2011-05-18 15:44:53,269 INFO nova [-] called setup_basic_filtering in nwfilter
2011-05-18 15:44:53,269 INFO nova [-] ensuring static filters

2011-05-18 15:44:53,269 INFO nova [-] called setup_basic_filtering in nwfilter
2011-05-18 15:44:53,269 INFO nova [-] ensuring static filters
2011-05-18 15:44:53,322 DEBUG nova.utils [-] Attempting to grab semaphore "iptables" for method "apply"... from (pid=2261) inner /home/fred/open/nova/nova/utils.py:594
2011-05-18 15:44:53,322 DEBUG nova.utils [-] Attempting to grab file lock "iptables" for method "apply"... from (pid=2261) inner /home/fred/open/nova/nova/utils.py:599
2011-05-18 15:44:53,325 DEBUG nova.utils [-] Running cmd (subprocess): sudo iptables-save -t filter from (pid=2261) execute /home/fred/open/nova/nova/utils.py:150
2011-05-18 15:45:28,918 INFO nova.compute.manager [-] Found instance 'instance-00000001' in DB but no VM. State=0, so assuming spawn is in progress.
2011-05-18 15:46:28,952 INFO nova.compute.manager [-] Found instance 'instance-00000001' in DB but no VM. State=0, so assuming spawn is in progress.
2011-05-18 15:47:28,985 INFO nova.compute.manager [-] Found instance 'instance-00000001' in DB but no VM. State=0, so assuming spawn is in progress.

network.log ---
2011-05-18 15:44:52,574 DEBUG nova.rpc [-] received {u'_msg_id': u'da3c661a6a4f43539a0014e6677b383d', u'_context_read_deleted': False, u'_context_request_id': u'-GBWLO580A36T5HQ3WLO', u'args': {u'network_id': 1}, u'_context_is_admin': True, u'_context_timestamp': u'2011-05-18T22:44:51Z', u'_context_user': u'fredy', u'method': u'set_network_host', u'_context_project': u'RAS', u'_context_remote_address': u'192.168.0.14'} from (pid=2267) _receive /home/fred/open/nova/nova/rpc.py:167
2011-05-18 15:44:52,575 DEBUG nova.rpc [-] unpacked context: {'timestamp': u'2011-05-18T22:44:51Z', 'remote_address': u'192.168.0.14', 'project': u'RAS', 'is_admin': True, 'user': u'fredy', 'request_id': u'-GBWLO580A36T5HQ3WLO', 'read_deleted': False} from (pid=2267) _unpack_context /home/fred/open/nova/nova/rpc.py:331
2011-05-18 15:44:52,581 DEBUG nova.network.manager [-GBWLO580A36T5HQ3WLO fredy RAS] setting network host from (pid=2267) set_network_host /home/fred/open/nova/nova/network/manager.py:161
2011-05-18 15:44:52,908 DEBUG nova.rpc [-] received {u'_msg_id': u'cc2514f2e0c14064b0a188f8fc29c08b', u'_context_read_deleted': False, u'_context_request_id': u'-GBWLO580A36T5HQ3WLO', u'args': {u'instance_id': 1, u'vpn': False}, u'_context_is_admin': True, u'_context_timestamp': u'2011-05-18T22:44:51Z', u'_context_user': u'fredy', u'method': u'allocate_fixed_ip', u'_context_project': u'RAS', u'_context_remote_address': u'192.168.0.14'} from (pid=2267) _receive /home/fred/open/nova/nova/rpc.py:167
2011-05-18 15:44:52,908 DEBUG nova.rpc [-] unpacked context: {'timestamp': u'2011-05-18T22:44:51Z', 'remote_address': u'192.168.0.14', 'project': u'RAS', 'is_admin': True, 'user': u'fredy', 'request_id': u'-GBWLO580A36T5HQ3WLO', 'read_deleted': False} from (pid=2267) _unpack_context /home/fred/open/nova/nova/rpc.py:331
2011-05-18 15:44:52,918 DEBUG nova.network.manager [-] network_ref 1 from (pid=2267) allocate_fixed_ip /home/fred/open/nova/nova/network/manager.py:176
2011-05-18 15:44:52,980 DEBUG nova.network.manager [-] allocated 10.0.0.2 fixed ip(s) from (pid=2267) allocate_fixed_ip /home/fred/open/nova/nova/network/manager.py:180
2011-05-18 15:44:53,000 DEBUG nova.network.manager [-] allocated 10.0.0.2 fixed ip(s) from (pid=2267) allocate_fixed_ip /home/fred/open/nova/nova/network/manager.py:182

Scheduler.log --
2011-05-18 15:44:52,087 DEBUG nova.rpc [-] received {u'_context_request_id': u'-GBWLO580A36T5HQ3WLO', u'_context_read_deleted': False, u'args': {u'topic': u'compute', u'instance_id': 1, u'injected_files': None, u'availability_zone': None}, u'_context_is_admin': True, u'_context_timestamp': u'2011-05-18T22:44:51Z', u'_context_user': u'fredy', u'method': u'run_instance', u'_context_project': u'RAS', u'_context_remote_address': u'192.168.0.14'} from (pid=2275) _receive /home/fred/open/nova/nova/rpc.py:167
2011-05-18 15:44:52,087 DEBUG nova.rpc [-] unpacked context: {'timestamp': u'2011-05-18T22:44:51Z', 'remote_address': u'192.168.0.14', 'project': u'RAS', 'is_admin': True, 'user': u'fredy', 'request_id': u'-GBWLO580A36T5HQ3WLO', 'read_deleted': False} from (pid=2275) _unpack_context /home/fred/open/nova/nova/rpc.py:331
2011-05-18 15:44:52,113 DEBUG nova.scheduler.chance [-] chance host stocky from (pid=2275) schedule /home/fred/open/nova/nova/scheduler/chance.py:38
2011-05-18 15:44:52,113 DEBUG nova.rpc [-] Making asynchronous cast on compute.stocky... from (pid=2275) cast /home/fred/open/nova/nova/rpc.py:391
2011-05-18 15:44:52,193 DEBUG nova.scheduler.manager [-] Casting to compute stocky for run_instance from (pid=2275) _schedule /home/fred/open/nova/nova/scheduler/manager.py:91
2011-05-18 15:45:27,272 DEBUG nova [-] Updating zone cache from db. from (pid=2275) ping /home/fred/open/nova/nova/scheduler/zone_manager.py:165

Similar nova.conf from https://answers.launchpad.net/nova/+question/156120 w/o glance gets Cactus to Running mode. Thanks,