Troubleshooting Noise from Avid BB-7 Road Disc Brakes
To align the caliper, loosen the caliper bolts and bring the fixed cpad as close as possible to the rotor without rubbing. Then dial in the fixed pad so that it is as close as possible without rubbing. Then install your cable/housing, and begin adjusting.

To improve brake feel, pre-stretch your cable before making adjustments. Take the wheel out, out a pad spacer in (Pedro's tire lever works great, or any other non-metal object), and squeeze the lever as hard as you can ten times. This will seat the housing into the ferrules, as well as stretch the cable out. 

If the pads are sitting in a "V", then the brake pad spring most likely needs replacing. You could also try spreading it open a bit first, but the springs are so cheap that it's worth it just to get new ones.

P.S. The Alfine dynamo actually uses loose ball bearings, making it re-packable. It's tricky, due to the wiring connectors, but it's nice to be able to do it yourself.

Avid Brake Pad Spring