I was thoroughly frustrated with the setup of my BB7s when I first installed them. I had stuttering, poor brake performance and just generally a funny feel on the levers. I hope this is going to help someone installing or readjusting calipers without going through the frustration like I did.
When you first install the calipers tighten them slightly so you can still move them with your hands easily. At this point your inboard and outboard pads are (should be) still completely retarded. Now slowly turn the inboard knob 2 clicks in, then turn the outboard knob by 1 clicks in. Repeat this until the pads grab the rotor and you can't turn either knob anymore. Don't cheat as this will properly (off)-center the rotor, the way it is supposed to be.
Now, grab your brake lever firmly and the caliper should center itself on the rotor. While holding the lever tightly, tighten the caliper bolts to recommended specs.
Now you can retard the inboard and outboard pads just enough so that the rotor runs freely without rubbing. If you got Roundagon rotors there is a good chance that the rotor will not be 100% straight right out of the box. You can try to correct that, or just retard the brakes far enough so there is no rub. I tried straightening without much success. After a few 100 miles though they seem to be truer than they were new or than I was able to adjust them.
I noticed that some online retailers sell the BB7 kits with Roundagons and others include the G2 rotors. Get the ones with the G2's, you'll regret if you don't.
BB7s from Avid are as good as it gets in a mechanical setup. So if there are any problems it is most likely an adjustment issue. Refer to the poorly illustrated paper mess they call a manual.
In the end it's all about the caliper adjustment.
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