Best way to find out is to test it on an actual device or in the Eclipse AVD.
The docs say...
in order for a device to be considered compatible with your application, the device's smallestWidth must be equal to or greater than this value. (Usually, the value you supply for this is the "smallest width" that your layout supports, regardless of the screen's current orientation.)
For example, a typical handset screen has a smallestWidth of 320dp, a 7" tablet has a smallestWidth of 600dp, and a 10" tablet has a smallestWidth of 720dp. These values are generally the smallestWidth because they are the shortest dimension of the screen's available space.
As it states above, the smallestWidth of a 7" tablet is 600dp
so I think your settings should work but the golden rule is to test it, both in the Eclipse Android Virtual Device and in an actual device.
Setup an AVD with Nexus 7 (7.27", 800 x 1280:tvdpi)
as the device and see how it goes.