before burning a cd, i tried 'qemu -cdrom gnewsense-livecd-deltah-2.1.iso'.
I don't know if someone did it as well - it's very weird - compaired with Ubuntu live cd, it boots too slow, and Gnome doesn't starts...
It could be an issue with QEMU.
You might want to try VirtualBox. It will boot from an ISO image with no problems.
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