Your answer suggests you either didn't look at my prior link, or didn't get skim past the intro stuff to the hardware and register setting details.
A key concept is that there are a number of counter/timers that are tied to specific hardware pins. You can configure a timer frequency, but they'll affect all the pins that are making use of that timer.
As to why you got activity on PB7: it's because that pin happens to be special on the 2560, in that that OC0A and OC1C outputs can be enabled individually or together for a modulated output (The atmel datasheet has a nice section that explains the the two-timer modulation case output). In your code fragment, you enabled the OC0A output when you set up the timer 0 registers.
PB5, on the other hand, has a OC1A output, which only has pwm controlled only by timer 1 registers. You didn't set any timer 1 registers, so of course it didn't work.
So, what Freddy said is correct. Understand the nomenclature: TCCRxA, TCCRxB, OCxA, OCxB, OCxC, OCRxA, etc, where "x" refers to the timer number associated with that registers functions.
Atmel datasheet:
http://www.atmel.com/Images/Atmel-2549-8-bit-AVR-Microcontroller-ATmega640-1280-1281-2560-2561_datasheet.pdf