I don't see any problems with the rotor or how the wheel is mounted or the brakes them selves, but it seems that I can wiggle the arm and adjuster a little too much
Don't know about new BB7's but the old ones have a 'Outer Calliper Body Seal' which goes between the calliper body and the torque arm.
The 'Outer Calliper Body Seal would basically fill up the gap and cover the silver part that's exposed between the torque arm and calliper body on your brake where you seem to be having the movement.
The 'Outer Calliper Body Seal' can be seen in some photos in the BB7 Overhaul Guide:
https://www.sram.com/_media/techdocs/Avid%20BB7%20Overhaul%20Guide.pdf
Found a photo where the seal can be seen on a older model BB7:
Another thing is there a 'Spring Tension Adjuster' on your torque arms, I can't see any of those in your photos either, it's the little hex screw that can be seen on the inside of the torque arm in the above photo.
Edit. Forget about the missing 'Spring Tension Adjuster' it's on the underside of the torque arm with new model BB7's, it can be seen on the first photo below. I didn't realise the brake design had changed
It does looks like the Outer Calliper Body Seal is missing on your brakes, the photos below of newer BB7's that don't show any silver between the torque arm and the calliper body. This probably won't stop the wiggle though, it seems to be just a seal to stop dirt and crap getting into the brake. I just looked at my old BB7's which have the seal on, the torque arm on them can be wiggled a bit too, they don't pulse either so that's probably not the cause. Try some pad adjustment for the pulsing and forget about the wiggle.
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