Hi all,
Thanks for all the helpful replies. Just a couple of quick responses:
1. I am running BB7 ROAD disc brakes, not the MTB version.
2. I can't be certain, but I'm 95% sure I don't have any cable drag issues.
3. In a general sense, I know I have these setup correctly. But it seems pretty clear that getting them set up with no rub and without running out of lever is not completely simple.
4. cderalow's setup instructions are different from Avid's, but I have a hunch he may be on to something with that approach.
I may try the Spyre's out just to see if they are a less finicky setup. hounslow is not the first to say that once gone to the TRP's the BB7's start to look like old and problematic technology.
thanks again to everyone for the help. I'll report back after doing some more work on the bike.