While most of Google TV will work after you use an application-specific password, the Google TV Gallery app is not compatible with 2-step verification. If you want to use the Gallery app, you will need to turn off 2-step verification. See some examples of application-specific passwords.
OK, the Logitech Revue really needs an update.. The gallery app does not support application-specific passwords - yet another annoying problem with the current version of Google TV. When *is* that update coming to the Revue?