We recently replaced the pads on our Avid mechanical disc brakes. It concided with a major placement adjustment due to a change of wheels. We are not able to set the pads to a point where they do not rub but still grab when needed.
I am sure I am overlooking something... any ideas?
No lubes around a disc brake... You can wash the caliper with soapy wate and then rinse with clear water, but that's about all that's needed for regular light maintenance.
I would double check your cable run to make sure it's not dragging anywhere and while you have the cable disconnected operate the Avid's actuating arm by hand to make sure that the movement feels smooth and doesn't lag or bind. If it does, remove the pads and operate the thing to see if that makes any difference. If that solves the problem, just reinstall your pads and check it again, putting a close eye on the pad.
If it still feels balky while the pads are removed, wash it again with the pads still off and if you have a compressor use a strait tip to blow-dry the assembly and then check again.
If things still aren't working smoothly, you'd need to pull the actuating arm apart as I'd suspect that something -- grit, grime, etc -- may have worked its way into threaded cam channels. Pretty unusual for a road bike unless it's seen a lot of use in really wet and gritty conditions.
Here's a link to the overhaul manual that outlines the step-by-step procedures for doing full-blown maintenance on the Avid: http://www.sram.com/_media/techdocs/...ul%20Guide.pdf. There's only one speciality tool required and if you have a really good bike shop nearby that deals with a lot of mountain bikes you may be able to borrow theirs. Hopefully, just a good cleaning and check of your cables will yield the solution to the balky performance. It's really rare that a road caliper needs any maintenance beyond cleaning and pad replacement.