"Does headspace off the belt mean there is 1 or 2 thousandths space between front of the belt and chamber belt notch?"
This is correct, and the amounts can vary somewhat up to .005 and can be more. Unless specially ordered by the gunsmith, Head Space gauges for belted mags are always off the belt.
Using a 35 caliber ogive gauge with dial caliper, you can measure the headspace of new unfired brass and then how much it grows after it is fired.
My 7 Rem mags and 300 WM loved an accuracy node right up at the top of the pressure curve, so brass usually lasted 5 firings on Rem brass and more on Winchester.
Lots of BS out there on sizing, but bottom line, you have to size enough of the Web where the bolt closes easily, but not too much. So, using the ogive gauge you can set some standards for a particular chamber
New brass headspace length Fire formed length Tight extraction length Neck sized length with Forster Neck sizer
Minimum and Max in the lot needs full length sizing bump shoulder .002 or more
The other can of worms is web dia, and BS abounds in internet lore on this issue. BS repeated becomes gospel truth. Many of the top gunsmiths in the country design proprietary reamers based on the Web dia, Shoulder dia, shoulder length, neck size, freebore dia, etc.
Today, the most ignorance lies in web dia of the new brand of brass that you are using vs the Reamer dimensions with production dies that vary. Realize that all reamer makers have a +/- tolerance of 0.0005 in their grinding, so you can get a smallish reamer or a slightly over size. Having problems often leads to a chamber cast with cerrosafe vs just ASSUMING that the reamer print is correct.
Many people send in their dummy rounds to the reamer maker and have the reamer maker make a reamer off of those several pieces of brass. The employee of the reamer maker may or may not be aware of the tolerances needed between the web of the case and the reamer for proper extraction, focusing on the neck dia, freebore dia, and freebore length for the dummy round supplied.
Many of the most successful gunsmiths in this country will take new brass, add a minimum of .0034 minimum for a hunting round, and match shooters may run a tighter .0023 over new brass dimensions. Recently in a conversation with two very experienced gunsmiths and National Match shooters told me that they add .005 and as much as 0.010 over new brass dimensions in order to not get Premature pressure signs with its related extraction issues.
I have personally experienced over size NEW brass issues with many of the Lapua cases, Norma cases, and RWS that are larger in the web vs their USA Saami spec counterparts. Peterson, AGD, and Alfa all have their web dimensions often different. So, the advanced reloader has to be aware of their Web dimensions and adapt accordingly.
New brass web dimension fully formed web dimension Max web dimension that needs full-length sizing
There is more than a double barrel butt load of bad information on Web dimensions in Super accurate long-range hunting rifles.
You need a micrometer that measures to 0.0001 to measure web dimensions as any machinist will tell you, never trust dial calipers and I have all the best....trust me on this issue. A $39 I-Gauging micrometer & Shars is well worth the money spent(ebay). I like the mechanical digital as they are harder to make a mistake reading. A reloader does not need a mic that measures to the 0.00001, and I would not advise you to spend money on one of these electronic mics as the first time you drop it, the electronic shut-off may be broken.
So, on the OP's 7 Mag, he will have to determine several measurements, Length of headspace and dia at the web where his bolt will close easily. I am sure that I have already bored the heck out of most reading this so I will go no further into problem-solving at the web dimension, and it is not related to the web.
The very best gunsmiths will take a particular brand of brass, design a reamer around that brand of brass where the Headspace length is minimal, and take into account the Web dimension of that particular brand of brass. You hear a of talk of neck dimension, throat dia dimension, and throat length, but few if any ever speak of the web and shoulder length as solving these two issues that make the phone ring with orders.
I am not a gunsmith but have dealt with these issues for over 30 years with my own reamer designs on wild cats and magnum long range hunting rifles.