Issue replacing Avid BB7 disc brake pads I just replaced the brake pads in my BB7 disc brakes for the first time.

I read up, watched videos, til I grasped what I was doing, and tried more than a handful of times. On the front brake, I can clearly see (with the wheel removed) that the pads are in a V position -- having a narrow gap further inside (the part harder to see), and a wider gap towards the outside. I assume this is just because of the way they sit around the spring.

The problem is, while the narrow part of that gap is (barely!) wide enough for the rotor, I can't get the rotor lined up in it properly. Even when the pads are dialed all the way out, and the caliper bolts are loose, it's hard to manually align it so there's no rub. 

So, I tried all kinds of approaches, but in the end, here's something that doesn't seem right, and I can't figure out what's up:

1) Loosened caliper bolts
2) Turned pad dials all the way out
3) Turned outside pad dial all the way in (this was an experiment, I know it's not the right approach)
4) Turn inside pad dial til rotor is snug
5) Tighten both caliper bolts, a little at a time
6) Turn both pad dials all the way out

Even in this case, it was the outer pad that rubbed against the rotor and the inner one had a big enough gap. Again, I know that's not exactly the right approach, but after not getting the outer pad to pull back enough off the rotor, I tried this, and am not sure where to go from here, since the outer pad still won't back off enough.
If only one brake pad rubs and there is a gap between the rotor and the other pad, then your brake isn't centered well. To fix it:


Use an allen key to loosen the caliper so that you can slide it around but it is still attached.
Pull the brake lever. This way, the brake goes into a position centered around the disc.
While still holding the lever, secure the brake again.
Release the brake lever and find out that your brake doesn't rub any more!