The X-treme 7" Internet tablet has a resolution of 800x480. With a 7" screen, that puts the pixels per inch somewhere around 80, which falls into very low end of the ldpi scale (which is <=120ppi. To convert a resolution of 800x480 to a density independent pixel (dp) screen size, we must multiply by ldpi's scaling of 0.75, which gives us a resolution of 600dp x 360 dp.
As per the range of screen supported guide, a large
screen must be at least 640dp x 480dp, therefore your X-treme 7" Internet tablet should be classified as a normal
screen device, hence why it is not picking up your layout-large
layouts.
You can use any number of the many apps on Google Play to confirm your tablet's screen density and what resources it should be loading.