I maintain a flash disk full of ISOs, which I loop boot through grub2 and a custom grub.cfg. Since I'm sure I'm not the only one, and because there doesn't seem to be any documentation, I'd like to share my menuentry for anyone else who wants the same thing (I have seen at least one person asking on these forums).

Code:
menuentry "Kali Linux 1.0 amd64" {
    iso="/kali-linux-1.0-amd64.iso"
    bootoptions="findiso=$iso boot=live noconfig=sudo username=root hostname=kali quiet splash"
    search --set -f $iso
    loopback loop $iso
    linux (loop)/live/vmlinuz $bootoptions
    initrd (loop)/live/initrd.img
}
menuentry "Kali Linux 1.0 amd64 (forensic)" {
    iso="/kali-linux-1.0-amd64.iso"
    bootoptions="findiso=$iso boot=live noconfig=sudo username=root hostname=kali noswap noautomount"
    search --set -f $iso
    loopback loop $iso
    linux (loop)/live/vmlinuz $bootoptions
    initrd (loop)/live/initrd.img
}