I'm a bit surprised at goodlife34's problems setting up his BB7's and STI's,I've been using the same set up on three bikes over the last 5 years without problem.
goodlife34 are your calipers the road version(silver)as the MTB version(black) has a different cable pull intended for flatbar V brake levers?
The quickest way I found to set up BB7's is:-
1,release the cable pinch bolt so you're sure the arm is at it's stop.
2,back the adjuster wheels off to their stops
3,slack off the caliper bolts just enough to allow the caliper to wobble on it's concave convex spacers,and float inboard/outboard in it's elongated slots.
4,wind in each adjuster until the caliper is locked onto the rotor with the rotor central in the caliper slot,this ensures the pads are contacting the rotor squarely.
5,tighten the caliper bolts.
6,back off each adjuster equally until the wheel spins freely without the rotor rubbing the pads,if you're unable to see if pads are backed off equally shine a torch though the caliper slot whilst looking through the otherside.
7,pulling the cable with a pair of pliers on the free/dead end tighten the cable pinch bolt.
8,operate the brake lever a few times to push outers against any stops,then repeat step 7.
Everything should now be working fine,but pads can be backed off a click or two depending on how much free play the individual prefers in the brake lever.
I've never had a situation either on the tandem or solo where the brake lever has ever come even close to bottoming out on the h/bars.
New brakes/pads I find do need a bedding in period of a 100miles or so before reaching optimum,this period can be shortened by a ride on wet muddy roads or by holding the brake slightly on,on a couple of longish or steep descents.
Once run in,BB7's are the best brakes with fantastic modulation,that I ever used on a bicycle easily out braking anything else I've used,the braking on our tandem is second to non