when i picked this nexus 7 up, i was kinda pissed that people outside of the US couldnt use their music service. its kind of neat; google lets you upload 20,000 songs to their servers so you can stream your library wherever you have a WiFi connection. even though i had some music saved locally on the device, i still wanted to take advantage of this.
scouring the xda-developer forums, i have found a solution that has worked for many, so i'll post it here since its something interesting to write about:
1. download tunnelbear
2. make an account then turn tunnelbear on
3. visit http://music.google.com and sign in
4. no errors about where you reside should pop up
5. hit upload music and download the google music manager
6. follow the steps and start uploading music
with this working now, when using the "my library" widget, it shows your album artwork for your uploaded music. its stupid that it wont display for locally-saved content though. enjoy.