Originally Posted by r3sistance
how did you come across this one? (I mean where/how did you discover this was the issue)
The VM is actuall Oracle Enterprise Linux 5 PV machine. From another forum I learnt that this type of machine can accept command for boot from vm.cfg file too. So I re-checked the file and found the line extra=1 which means boot to single user mode.
Thanks for your replies and help.