Google Maps - "App won't run unless you update Google Play services"

Question

I'm just trying to run the simple Google Maps tutorial here: https://developers.google.com/maps/documentation/android/start

I'm running my app on my Nexus 4, and I receive the "update Google Play services" message with an Update button. When I click the Update button, it takes me to the Google Play services app on the Play Store, but it appears that it's updated to the latest version.

Is there anything else I might be missing?

Android Manifest file:

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    package="com.example.ridenotifier"
    android:versionCode="1"
    android:versionName="1.0" >

    <uses-permission android:name="android.permission.READ_CONTACTS" />
    <uses-permission android:name="android.permission.SEND_SMS" />
    <uses-permission android:name="android.permission.RECEIVE_SMS" />
    <uses-permission android:name="android.permission.ACCESS_FINE_LOCATION" />

    <uses-sdk
        android:minSdkVersion="11"
        android:targetSdkVersion="16" />

    <application
        android:allowBackup="true"
        android:icon="@drawable/ic_launcher"
        android:label="@string/app_name"
        android:theme="@style/AppTheme" >
        <uses-library android:name="com.google.android.maps" />

        <activity
            android:name="com.example.ridenotifier.MainActivity"
            android:label="@string/app_name" >
            <intent-filter>
                <action android:name="android.intent.action.MAIN" />

                <category android:name="android.intent.category.LAUNCHER" />
            </intent-filter>
        </activity>
        <activity
            android:name="com.example.ridenotifier.ContactListActivity"
            android:label="@string/title_activity_contact_list" >
        </activity>

        <meta-data
            android:name="com.google.android.maps.v2.API_KEY"
            android:value="AIzaSyATNKboMr-94m9GUWOlLkEgApQW4uvh4Js"
            />

    </application>

</manifest>

Screenshot:

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Answer 1

According to discussion with Android Developer on Google+, running the new Map API on emulator is not possible at the moment.

Add the following permissions..

<permission
      android:name="yourpackageName.permission.MAPS_RECEIVE"
      android:protectionLevel="signature"/>
<uses-permission android:name="yourpackageName.permission.MAPS_RECEIVE"/>

<uses-permission android:name="android.permission.INTERNET"/>
<uses-permission android:name="android.permission.WRITE_EXTERNAL_STORAGE"/>
<uses-permission android:name="com.google.android.providers.gsf.permission.READ_GSERVICES"/>
<uses-permission android:name="android.permission.ACCESS_COARSE_LOCATION"/>
<uses-permission android:name="android.permission.ACCESS_FINE_LOCATION"/>