This is the exact method I used, and still no bite. They stop from moderate speed, but definitely very soft and only halfway through the lever. Front has original juicy pads, rear cheap clarks.
Edit: ok I might've missed a step, I'll try again today.
The BB7s? They setup correctly? Mine bite nicely and work great, stop a loaded tourer down hills etc without any worry.
Edit, they the original pads? I use the Disco Pads and they've been excellent.