Menu > Custom Setting Menu > e3 > Change to "CMD" Commander Mode > Press right to access sub-menu > Adjust Modes Accordingly.
If you are using one SB-700, use Group A Channel 1.(see user's manual for details on settings). You may wish to turn off the on-camera flash by selecting "--" for its mode.
Turn power switch to "Remote".
Verify that Channel and Group matches that of the settings on the D7000 (Group A, Channel 1).
Pop-up your on-camera flash and make sure there is a line of sight from the pop-up flash to the IR "eye" on the upper-right side of the SB-700.
All changes to flash mode (TTL, AA, Manual, etc) and output power are now handled in the D7000 menu (e3).
Most important thing to remember is that the system communicates via IR and blocking the eye or shooting in very bright outdoor environments may not work. Your flash will beep with different "codes" depending on the CLS system success or failure. See the SB-700 manual for information on that.