Hi.
I found the answer here http://downloadmirror.intel.com/23197/eng/Quark_BSP_BuildandSWUserGuide_329687_006.pdf
I realized that I need to use the patched version of yocto that contains board support packages otherwise if plain yocto x86 build is used it won't boot.
I did the following on my OpenSuSE 13.1 box:
- Download Board_Support_Package_Sources_for_Intel_Quark_v0.7.5 (from https://downloadcenter.intel.com/Detail_Desc.aspx?DwnldID=23197)
- untar meta-clanton
- ./setup.sh
- source poky/oe-init-build-env yocto_build
- bitbake image-full-galileo (I fixed here and there few things)
- Copy all files from ./tmp/deploy/images/ on SD card
- Boot the image (it boots and works fine) and all file changes are preserved after reboot.