UBUNTU Using GRUB2 to boot to ISO 

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As part of your recovery system on your servers you may require a rescue system to be available from the boot menu. In the event of failure so long as the boot files are still accessible and the ISO to boot from we can boot to the recover ISO and use the tools to repair our host system. We will look at the Ubuntu Recovery Remix ISO and include this in our GRUB menu.
Firstly we will need to download the ISO file from ubuntu-rescue-r... and add the file to our server. In the example we add the ISO file to the /boot/iso directory on our Ubuntu 12.04 server.
With the ISO in place we can look at editing our 40_custom file in /etc/grub.d or if we feel it necessary creating a new file.
menuentry "Remix Recovery" {
insmod part_msdos
insmod ext2
set isofile="/boot/iso/ubuntu-rescue-remix-12-04.iso"
loopback loop (hd0,1)$isofile
linux (loop)/casper/vmlinuz boot=casper iso-scan/filename=$isofile noprompt noeject
initrd (loop)/casper/initrd.gz
}