I am pretty close. I can load Cirros instance on Compute and run nslookup inside it. Everything is fine with IP's and routing. However , i cannot connect via ssh to both Cirros and Fedora 19 instances. Might it be gre tunnelling issue ? Details :-

On Controller :-

[root@ip-192-169-142-57 ~(keystone_admin)]$ neutron security-group-rule-create --protocol tcp \
>   --port-range-min 22 --port-range-max 22 \
>   --direction ingress --remote-ip-prefix 0.0.0.0/0 default
Multiple security_group matches found for name 'default', use an ID to be more specific.

[root@ip-192-169-142-57 ~(keystone_admin)]$ neutron security-group-list

+--------------------------------------+---------+-------------+
| id                                   | name    | description |
+--------------------------------------+---------+-------------+
| a085748d-92c0-40e0-a4c1-bc86935ec0ee | default | default     |
| b6203882-561d-4f7b-9e2e-441c57e83419 | default | default     |
| c70b80d3-f060-4002-af22-6603c745a6cf | default | default     |
+--------------------------------------+---------+-------------+

[root@ip-192-169-142-57 ~(keystone_admin)]$ neutron security-group-rule-create --protocol tcp   --port-range-min 22 --port-range-max 22   --direction ingress --remote-ip-prefix 0.0.0.0/0  a085748d-92c0-40e0-a4c1-bc86935ec0ee
409-{u'NeutronError': {u'message': u'Security group rule already exists. Group id is 6d15d6cc-ed13-4c26-89ff-7ff10e6c4656.', u'type': u'SecurityGroupRuleExists', u'detail': u''}}

[root@ip-192-169-142-57 ~(keystone_admin)]$ neutron security-group-rule-create --protocol tcp   --port-range-min 22 --port-range-max 22   --direction ingress --remote-ip-prefix 0.0.0.0/0  b6203882-561d-4f7b-9e2e-441c57e83419
Created a new security_group_rule:

+-------------------+--------------------------------------+
| Field             | Value                                |
+-------------------+--------------------------------------+
| direction         | ingress                              |
| ethertype         | IPv4                                 |
| id                | 97232fb3-6ba1-46a3-a8e3-2f25ba0c70dc |
| port_range_max    | 22                                   |
| port_range_min    | 22                                   |
| protocol          | tcp                                  |
| remote_group_id   |                                      |
| remote_ip_prefix  | 0.0.0.0/0                            |
| security_group_id | b6203882-561d-4f7b-9e2e-441c57e83419 |
| tenant_id         | 751cda6ede504ccd9562edd233b32b34     |
+-------------------+--------------------------------------+

[root@ip-192-169-142-57 ~(keystone_admin)]$ neutron floatingip-show \
3d40ed62-ad78-4042-8342-9f76c419c8c1

+---------------------+--------------------------------------+
| Field               | Value                                |
+---------------------+--------------------------------------+
| fixed_ip_address    | 10.0.0.2                             |
| floating_ip_address | 192.169.142.105                      |
| floating_network_id | 8e2df372-544d-4921-ad58-e164e5128410 |
| id                  | 3d40ed62-ad78-4042-8342-9f76c419c8c1 |
| port_id             | 41da6b37-dfd8-49a2-8dae-45d9a99ef7d7 |
| router_id           | ba157037-747e-4a44-84d5-13d7d30e88ac |
| tenant_id           | 751cda6ede504ccd9562edd233b32b34     |
+---------------------+--------------------------------------+



[root@ip-192-169-142-57 ~(keystone_admin)]$ ssh -l fedora -i oskey1.priv 192.169.142.105

Hangs

I double checked iptables on compute  node . It's OK