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It's something like you slip a business card between the inbound pad and the rotor, then squeeze the lever and it puts the caliper in the right position, the business card creates the clearance for the inbound pad.
Personally I just dial the inboard pad in a bit, squeeze the lever, do the bolts up and then back the pad back off.
Most important bits to bb7 in my experience though are, compressionless cables and arm fully returning.
Sorry if this is teaching you to suck eggs but if you're using drop levers, you are using bb7 road calipers not bb7 mtn calipers?
M_V
I wasn't setting them up using card or anything. Just adjusted dials until they rubbed, then backed off...