Thank you, Chris. After some more testing, I have confirmed what you were saying. When I used my D300 primarily (before my D7000), I was using a Hahnel Giga T Pro intervalometer for time lapses, and I completely understood the concept of intervals. But for some reason, when I got my D7000, I reverted back to incorrectly thinking that "interval" means the time between each exposure. I guess I assumed that since this feature was built by Nikon into the camera itself, it wouldn't allow the user to select settings that are mathematically impossible. Kinda strange that Nikon would allow it to.
At any rate, thanks so much for the insight and the slap to the back of my head.