I had tried everything suggested here and suggested in every log/blog that I could find in google, but still no go. The USB cable is known to be good. ADB is version 1.0.31 (as shown with , USB Debugging is enabled in the Nexus 7 tablet, the SDK was updated to the very latest tools as available on 1-mar-2013 for 4.2.2/API 17. I had tried both Media and Camera modes for USB, rebooted windows, rebooted device over and over again, re-installed latest google USB driver, etc. etc. but ADB Devices still showed nothing.
I hard reset the Nexus 7 tablet thinking that maybe the screen to allow usb debugging had appeared but got hit with cancel. But that didn't work either.
What finally worked was:
- going into windows control panel | Device Manager,
- selecting NEXUS under Portable devices,
- then in the Driver tab clicking on update and manually selecting the Google USB driver (the check feature said it was up to date). Previously, the date shown was in 2006, afterwards a date in 2012 (but more on this in a moment).
That didn't fix anything though.
So then I switched USB from MEDIA device to Camera device - THEN it wanted to install driver software, so I let it do that. Afterwards, I noticed that the driver for the Nexus was back with the 2006 version, BUT then ADB DEVICES FINALLY SHOWED OFFLINE!!!! HALLELUJAH AND the Nexus was displaying the Dialog to allow USB debugging, and it now all works.
What I am not sure of is what step actually solved the problem. I don't think it was necessary to hard reset the Tablet, but the fiddling with the device driver wasn't a very convincing solution either - I don't think the driver was corrupt - but maybe it had to be changed to get the right driver associated with the tablet when connected as a Camera Device. In any event, it is necessary to connect the tablet as a Camera device for ADB to work...