This is a brand new CentOS7 with RDO allinone build. We can't launch any instances.. Any help is greatly appreciated@!

Output from
libguestfs-test-tool

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* When reporting bugs, include the COMPLETE, UNEDITED
* output below in your bug report.
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PATH=/usr/local/sbin:/usr/local/bin:/sbin:/bin:/usr/sbin:/usr/bin:/root/bin
SELinux: Enforcing
guestfs_get_append: (null)
guestfs_get_autosync: 1
guestfs_get_backend: libvirt
guestfs_get_backend_settings: []
guestfs_get_cachedir: /var/tmp
guestfs_get_direct: 0
guestfs_get_hv: /usr/libexec/qemu-kvm
guestfs_get_memsize: 500
guestfs_get_network: 0
guestfs_get_path: /usr/lib64/guestfs
guestfs_get_pgroup: 0
guestfs_get_program: libguestfs-test-tool
guestfs_get_recovery_proc: 1
guestfs_get_selinux: 0
guestfs_get_smp: 1
guestfs_get_tmpdir: /tmp
guestfs_get_trace: 0
guestfs_get_verbose: 1
host_cpu: x86_64
Launching appliance, timeout set to 600 seconds.
libguestfs: launch: program=libguestfs-test-tool
libguestfs: launch: version=1.28.1rhel=7,release=1.18.el7,libvirt
libguestfs: launch: backend registered: unix
libguestfs: launch: backend registered: uml
libguestfs: launch: backend registered: libvirt
libguestfs: launch: backend registered: direct
libguestfs: launch: backend=libvirt
libguestfs: launch: tmpdir=/tmp/libguestfsCiXvwb
libguestfs: launch: umask=0022
libguestfs: launch: euid=0
libguestfs: libvirt version = 1002008 (1.2.8)
libguestfs: guest random name = guestfs-ecwkqdns6qyvh9v5
libguestfs: [00000ms] connect to libvirt
libguestfs: opening libvirt handle: URI = qemu:///system, auth = default+wrapper, flags = 0
libguestfs: successfully opened libvirt handle: conn = 0x7f7db27ccaa0
libguestfs: qemu version (reported by libvirt) = 1005003 (1.5.3)
libguestfs: [00034ms] get libvirt capabilities
libguestfs: [00056ms] parsing capabilities XML
libguestfs: [00056ms] build appliance
libguestfs: [00060ms] begin building supermin appliance
libguestfs: [00060ms] run supermin
libguestfs: command: run: /usr/bin/supermin5
libguestfs: command: run: \ --build
libguestfs: command: run: \ --verbose
libguestfs: command: run: \ --if-newer
libguestfs: command: run: \ --lock /var/tmp/.guestfs-0/lock
libguestfs: command: run: \ --copy-kernel
libguestfs: command: run: \ -f ext2
libguestfs: command: run: \ --host-cpu x86_64
libguestfs: command: run: \ /usr/lib64/guestfs/supermin.d
libguestfs: command: run: \ -o /var/tmp/.guestfs-0/appliance.d
supermin: version: 5.1.10
supermin: rpm: detected RPM version 4.11
supermin: package handler: fedora/rpm
supermin: acquiring lock on /var/tmp/.guestfs-0/lock
supermin: build: /usr/lib64/guestfs/supermin.d
supermin: build: visiting /usr/lib64/guestfs/supermin.d/base.tar.gz type gzip base image (tar)
supermin: build: visiting /usr/lib64/guestfs/supermin.d/daemon.tar.gz type gzip base image (tar)
supermin: build: visiting /usr/lib64/guestfs/supermin.d/excludefiles type uncompressed excludefiles
supermin: build: visiting /usr/lib64/guestfs/supermin.d/hostfiles type uncompressed hostfiles
supermin: build: visiting /usr/lib64/guestfs/supermin.d/init.tar.gz type gzip base image (tar)
supermin: build: visiting /usr/lib64/guestfs/supermin.d/packages type uncompressed packages
supermin: build: visiting /usr/lib64/guestfs/supermin.d/udev-rules.tar.gz type gzip base image (tar)
supermin: build: 185 packages, including dependencies
supermin: build: 30478 files
supermin: build: 17307 files, after removing unreadable files
supermin: build: 8695 files, after matching excludefiles
supermin: build: 8701 files, after adding hostfiles
supermin: build: 8731 files, after munging
supermin: kernel: picked kernel vmlinuz-3.10.0-229.el7.x86_64
supermin: kernel: picked modules path /lib/modules/3.10.0-229.el7.x86_64
supermin: kernel: kernel_version 3.10.0-229.el7.x86_64
supermin: kernel: modules /lib/modules/3.10.0-229.el7.x86_64
supermin: ext2: creating empty ext2 filesystem '/var/tmp/.guestfs-0/appliance.d.uis3crjp/root'
supermin: ext2: populating from base image
supermin: ext2: copying files from host filesystem
supermin: ext2: copying kernel modules
supermin: ext2: creating minimal initrd '/var/tmp/.guestfs-0/appliance.d.uis3crjp/initrd'
supermin: ext2: wrote 33 modules to minimal initrd
supermin: renaming /var/tmp/.guestfs-0/appliance.d.uis3crjp to /var/tmp/.guestfs-0/appliance.d
libguestfs: [70256ms] finished building supermin appliance
libguestfs: command: run: qemu-img
libguestfs: command: run: \ create
libguestfs: command: run: \ -f qcow2
libguestfs: command: run: \ -o backing_file=/var/tmp/.guestfs-0/appliance.d/root,backing_fmt=raw
libguestfs: command: run: \ /tmp/libguestfsCiXvwb/overlay2
Formatting '/tmp/libguestfsCiXvwb/overlay2', fmt=qcow2 size=4294967296 backing_file='/var/tmp/.guestfs-0/appliance.d/root' backing_fmt='raw' encryption=off cluster_size=65536 lazy_refcounts=off
libguestfs: [70525ms] create libvirt XML
libguestfs: command: run: dmesg | grep -Eoh 'lpj=[[:digit:]]+'
libguestfs: read_lpj_from_dmesg: calculated lpj=2811527
libguestfs: libvirt XML:\n<?xml version="1.0"?>\n<domain type="qemu" xmlns:qemu="http://libvirt.org/schemas/domain/qemu/1.0">\n <name>guestfs-ecwkqdns6qyvh9v5</name>\n <memory unit="MiB">500</memory>\n <currentMemory unit="MiB">500</currentMemory>\n <vcpu>1</vcpu>\n <clock offset="utc">\n <timer name="rtc" tickpolicy="catchup"/>\n <timer name="pit" tickpolicy="delay"/>\n <timer name="hpet" present="no"/>\n </clock>\n <os>\n <type>hvm</type>\n <kernel>/var/tmp/.guestfs-0/appliance.d/kernel</kernel>\n <initrd>/var/tmp/.guestfs-0/appliance.d/initrd</initrd>\n <cmdline>panic=1 console=ttyS0 udevtimeout=6000 udev.event-timeout=6000 no_timer_check lpj=2811527 acpi=off printk.time=1 cgroup_disable=memory root=/dev/sdb selinux=0 guestfs_verbose=1 TERM=xterm-256color</cmdline>\n <bios useserial="yes"/>\n </os>\n <on_reboot>destroy</on_reboot>\n <devices>\n <controller type="scsi" index="0" model="virtio-scsi"/>\n <disk device="disk" type="file">\n <source file="/tmp/libguestfsCiXvwb/scratch.1"/>\n <target dev="sda" bus="scsi"/>\n <driver name="qemu" type="raw" cache="unsafe"/>\n <address type="drive" controller="0" bus="0" target="0" unit="0"/>\n </disk>\n <disk type="file" device="disk">\n <source file="/tmp/libguestfsCiXvwb/overlay2"/>\n <target dev="sdb" bus="scsi"/>\n <driver name="qemu" type="qcow2" cache="unsafe"/>\n <address type="drive" controller="0" bus="0" target="1" unit="0"/>\n <shareable/>\n </disk>\n <serial type="unix">\n <source mode="connect" path="/tmp/libguestfsCiXvwb/console.sock"/>\n <target port="0"/>\n </serial>\n <channel type="unix">\n <source mode="connect" path="/tmp/libguestfsCiXvwb/guestfsd.sock"/>\n <target type="virtio" name="org.libguestfs.channel.0"/>\n </channel>\n </devices>\n <qemu:commandline>\n <qemu:env name="TMPDIR" value="/var/tmp"/>\n </qemu:commandline>\n</domain>\n
libguestfs: command: run: ls
libguestfs: command: run: \ -a
libguestfs: command: run: \ -l
libguestfs: command: run: \ -Z /var/tmp/.guestfs-0
libguestfs: drwxr-xr-x. root root unconfined_u:object_r:user_tmp_t:s0 .
libguestfs: drwxrwxrwt. root root system_u:object_r:tmp_t:s0 ..
libguestfs: drwxr-xr-x. root root unconfined_u:object_r:user_tmp_t:s0 appliance.d
libguestfs: -rw-r--r--. root root unconfined_u:object_r:user_tmp_t:s0 lock
libguestfs: command: run: ls
libguestfs: command: run: \ -a
libguestfs: command: run: \ -l
libguestfs: command: run: \ -Z /tmp/libguestfsCiXvwb
libguestfs: drwxr-xr-x. root root unconfined_u:object_r:user_tmp_t:s0 .
libguestfs: drwxrwxrwt. root root system_u:object_r:tmp_t:s0 ..
libguestfs: srw-rw----. root qemu unconfined_u:object_r:user_tmp_t:s0 console.sock
libguestfs: srw-rw----. root qemu unconfined_u:object_r:user_tmp_t:s0 guestfsd.sock
libguestfs: -rw-r--r--. root root unconfined_u:object_r:user_tmp_t:s0 overlay2
libguestfs: -rw-r--r--. root root unconfined_u:object_r:user_tmp_t:s0 scratch.1
libguestfs: -rwxr-xr-x. root root unconfined_u:object_r:user_tmp_t:s0 umask-check
libguestfs: [70671ms] launch libvirt guest
libguestfs: error: could not create appliance through libvirt.

Try running qemu directly without libvirt using this environment variable:
export LIBGUESTFS_BACKEND=direct

Original error from libvirt: internal error: process exited while connecting to monitor: Cannot set up guest memory 'pc.ram': Cannot allocate memory
[code=1 domain=10]
libguestfs-test-tool: failed to launch appliance
libguestfs: closing guestfs handle 0x7f7db27cc400 (state 0)
libguestfs: command: run: rm
libguestfs: command: run: \ -rf /tmp/libguestfsCiXvwb