BB7 pads have holes on the pad backing surface, grease at the back will eventually contaminate the pads.
When I looked into this issue some time ago trying to cure said squeal on a bike, I found that disc brake squeal has been the subject of numerous phd thesis and learned academic papers for 30 years, with no sign of stopping any time soon. The reason it is so challenging is that there can be numerous causes which can result in harmonic vibration of various parts (pad, rotor, caliper etc. even the whole machine!), which may be set off as well as disappear with the smallest change in all sorts of parameters (temperature, friction, moisture, deformation, looseness etc.), and changing one thing (e.g. greasing the back) might actually change another (positioning the spring differently) which may result in improvement or otherwise, and which may stay or may not. It is precisely because of the problem's multivariate nonlinearity why you won't find a single reputable source telling you the solution is X and it will work, only sources which are trying to sell snake oil for profit will do that.
I hate to be the bearer of such a message, but it is what it is. As to what to do, imho I would exercise the brakes and let it break in some more, if that doesn't work then follow Avid's instruction to set it up correctly (2/3rd 1/3rd, tightening bolts and all that), cleaning rotors and roughening the pads lightly, and if that doesn't work try changing the pads to organics. It could be a bitch that is not going away, or coming or going all the time, but you might also be lucky - BB7's aren't supposed to be particularly prone to squeal.
Good luck!!