I live in Sweden, and come from Australia.
To answer your question,
We're sorry. The Google Play music player is currently only available in the United States.
Sorry! Magazines on Google Play is not available in your country yet.
Sorry! Books on Google Play is not available in your country yet.
Sorry! Movies on Google Play is not available in your country yet.
(And cant buy a Nexus 7)
It is the same as my Aussie Xbox Live account.. they are geo region locked.
Even with my Aussie credit card on my Aussie account used in sweden, i am unable to purchase content, or download content already purchased, without an Aussie IP address.
To relate that to Google Play or in my case Samsung store, Even with Aussie credit card and Aussie accounts, i am unable to purchase or download. I tried an android VPN on my unrooted ICS, and the VPN and overseas IP only worked on web browser etc, not marketplace, so unable to install free apps.
Welcome to the world of region locking..