I've ran into a lot of problems that you have probably seen on Complete Linux Installer(or known as LOA):

"Unable to mount image"
"Unable to loop device"

I found a work around and got it up and running in the Terminal Emulator.
The steps on LOA app:
1. Download from their server using the app. After download is complete, open with an extractor. (I used ZArchiver)
2. Configure linux in the app. Editing and setting up the .img path, turn on ssh server, and vnc settings.
3. Click start
4. After everything is done, open vnc and connect.
Unfortunately.....we all know it's not that simple. Usually it stops at "Unable to loop device"
And if you notice, on step 3 in the app it says there should be 2 FILES! I only got 1. There's supposed to be an .img and .md5.

Well, heres the way I was able to get both files and able to run linux.
1. Go here http://sourceforge.net/projects/linu.../Kali%20Linux/ and download kalilinux.BASIC.ext2.20131012.
If you already downloaded the linux from the app, you should have this file on your android device and move it to your computer.
2. Use any extractor(I used WinRar) and extract
3. You should see 2 files in the folder
Now move them to your android device.
4. Go back to LOA, start linux like normal and you should see a new prompt asking to verify checksum.
5. Type "y" and press enter. This takes a moment....
6. After done, it should ask for a UNIX password.
7. It will boot up ssh server and tell you its ready to connect to vnc.
This is the part where i'm stuck. I go to my VNC app(AndroidVNC) and I put localhost as the username, my UNIX password as the password,and tap connect.
Authentication failed. What am I doing wrong? I even used the command vncpasswd to change the vnc password. I also updated the system too.

What are your thoughts? Or try it yourself and see if you can get it working. I'm like 99% there.

Note: I did run into error "Unable to mount image to device" and canceled out the error "Unable to loop device." I solved it by simply going back to the Terminal Emulator and closing the window and close the app itself through your Recent Apps page.