Other reasons for wanting to boot into an ISO , is when you want to partition your drives, using a tool such as Gparted. Gparted sets up a Grub grub.config for you, however , if you upgraded from Grub to Grub2, Gparted may use Grub config and miss Grub2 which uses the different grub2.cfg.
Luckily, you can edit Grub during boot to boot into whatever your choice is. To boot a Linux Live CD, use these settings (settings can be added to grub2.cfg file or added to grub2 as comp boots, by pressing 'e' , however this is temporary and needs to be done for every reboot:
menuentry "Linux Mint live" {
set isofile="/path-from-root-to-your-Linux-mint-ISO -file/linuxmint-12-gnome-cd-nocodecs-32bit.iso"
loopback loop $isofile
linux (loop)/casper/vmlinuz boot=casper iso-scan/filename=$isofile quiet noeject noprompt splash --
initrd (loop)/casper/initrd.lz
}
To boot Gparted into RAM(allows you to manage all partitions as none is mounted) using Grub2 , use:
menuentry "Gparted live" {
set isofile="/home/projects/Downloads/or-whatever-path-gets-to-your-Gparted-iso/gparted-live-0.11.0-7.iso"
loopback loop $isofile
linux (loop)/live/vmlinuz boot=live config union=aufs noswap noprompt ip=frommedia toram=filesystem.squashfs iso-scan/filename=$isofile
initrd (loop)/live/initrd.img
}
The above can be modified to boot from a USB. In case you are lost, you can use the ls command to list what's available to you and the Tab key as a shortcut to complete your directives.