Secondly buy and install the “Nexus Media Importer” app at the Play store. Cost – $2.99
3rd – connect a thumb drive with pictures or video or really any file to the cable and plug it into your Nexus 7. Nexus Media Importer will open up, ask you a series of questions and you’re ready to go. You can play many of the files right from the program or select a file/files and save them to your Nexus 7 for playback later.
You can even connect your one terrabyte drive if you give it enough power via a powered usb hub.
Here’s a video of the process.