I use Zune to manage my Collection on my networked PC, but that shouldn't make a difference to the Xbox. I have an Xbox Music Pass, but am not sure that is required. And I don't know where in the world different pass and Xbox features are available.
I don't remember how I originally set it up on my Xbox 360 E, but I did have to sign in with the Xbox Music (Pass) account (email ID), and at some point, in an app, I believe, I associated or identified the My Music PC folder and gave it its own Xbox collection name. This PC (folder) is now found/seen on my network by the Xbox, along with other devices, and when I cursor to the My Music Apps tile under Music in the Xbox, the collection name appears. Clicking on that shows my entire My Music PC Collection, including both owned and XBM Pass subscription albums.
I don't know if this is helpful, but I can log into my Xbox and try to answer any specific question next time I log in here.