Sounds like this is your problem, here's the fix from the service manual (which you can download from the SRAM site):
troubleshooting (not pictured)
The most common issue with the BB7 is that the
outboard pressure foot can become dislodged if
the outboard adjustment knob is turned too far
clockwise without the rotor in the caliper (wheel
off or caliper removed). The brake is not broken,
nor does it require disassembly to replace the
pressure foot. To replace the pressure foot, turn
the outboard adjuster knob counter-clockwise
until it stops. If the knob doesn’t stop, then the
foot screw (the end of which can be seen in the
center of the knob) has become disengaged
from the knob and possibly from the threads
inside the drive cam. In this case, remove the
knob, then using a pair of small needle-nosed
pliers or a schrader valve tool, turn the the foot
screw all the way back out until it stops. Now
the pressure foot can be replaced. Relocate the
pressure foot into the bore, then give it a firm
push in the center. It will click back into place.
If you removed the knob, replace it and you’re
done!
troubleshooting (not pictured)
The most common issue with the BB7 is that the
outboard pressure foot can become dislodged if
the outboard adjustment knob is turned too far
clockwise without the rotor in the caliper (wheel
off or caliper removed). The brake is not broken,
nor does it require disassembly to replace the
pressure foot. To replace the pressure foot, turn
the outboard adjuster knob counter-clockwise
until it stops. If the knob doesn’t stop, then the
foot screw (the end of which can be seen in the
center of the knob) has become disengaged
from the knob and possibly from the threads
inside the drive cam. In this case, remove the
knob, then using a pair of small needle-nosed
pliers or a schrader valve tool, turn the the foot
screw all the way back out until it stops. Now
the pressure foot can be replaced. Relocate the
pressure foot into the bore, then give it a firm
push in the center. It will click back into place.
If you removed the knob, replace it and you’re
done!