The thing to remember about the K-7 is that the ISO performance is not very good. With the K20D (same sensor basically) I would never go over ISO 640 - the sensor noise is just too ugly after that. I suppose if you put a lot of work into post-processing, you could go up to ISO 1600, but I tried to never have to do that.
So I think you should have a lens that does f/2.8 or even faster, to be able to keep the ISO down.
So my suggestions are...
Zooms:
Tamron 17-50mm f/2.8 - around 150 dollars or less in the used market. Be aware that the build quality isn't great, and a lot of samples out there have issues with focusing or even the front part of the lens coming apart from the rest of the body. If you can find one in good condition, the pictures I've seen from it are very nice. Screw-drive focus, so you will hear it while focusing, like the DA 15 Limited.
Sigma 17-50mm f/2.8 - around 200-250 dollars in the used market. Better built than the Tamron, and it also has silent focusing due to a lens focus motor. Great image quality as well, on par with the Tamron - any differences would be personal taste, from what I've seen. The Sigma however is a bit bigger and heavier.
Pentax 16-50mm f/2.8 - can be had pretty cheap these days considering it's a manufacturer's professional zoom! I've seen them going for less than 300 but the cost is usually more like 350-400 dollars in the used market. The upside is the colors and rendering are typical Pentax - if you like the look of Pentax lenses, you will like the pictures you get from it. The downside is that it's optically inferior to the Sigma and Tamron lenses - the Tamron being the best in regards to flaring and aberration control in harsh light, the Sigma just behind, and the Pentax quite a bit behind. The Pentax will also be a bit less sharp wide open. There's an in-depth comparison here on the site with all 3 lenses, so it's worth a look.
Primes-affordable
Two lens that will pack a lot of image quality for the price:
Pentax DA 35 2.4 - used for 70 dollars or so, new for about 100-120, depending on when you get it... very sharp, good contrast and Pentax colors. Some complain that it has a bit or a "clinical look" like zooms usually do, but I don't see people complaining about that with their favorite zooms... so I think it's more of people just being picky and the DA 35 2.8 Limited being so good.
Pentax-F 50mm f/1.7 - these are going for ridiculously low prices these days, like 60 dollars or so - and people can't seem to be able to sell them, there's a couple stuck here in the Marketplace For-Sale section of this forum.
I have both of these lenses and they're fantastic.
Primes-a bit more money
Sigma 30mm f/1.4 Art (about 300 dollars used) or Pentax DA 35 2.8 Limited (I got my SMC version recently for 179 shipped but they will usually go for 250+ dollars). Either one is an excellent lens, I also have both now. The Sigma is amazing with low light performance, of course. A few aberrations wide open but not worse than what you'd get with a zoom. Silent focus to boot, but a bit big for a prime. Plenty of character and once you get past f2 it's deadly sharp. Now the Pentax DA 35 2.4 is all that as well, plus is relatively small and light, all metal (great build), focuses down to 1:1 macro and the rendering and colors are just incredible. Super sharp as well. I don't think you would go wrong with either one - the Sigma is f/1.4 and bigger, the Pentax is f/2.8 and smaller, has macro but will hunt a bit in low light, so the autofocus is not perfect. neither is the AF on the Sigma - I don't have any problems but I use center point focusing. Some people like to use multi-point focusing and apparently the Sigma gets a bit lost with that.
Couple one of those with the Pentax DA 70mm f/2.4 for portraits and more distant objects. The DA 70 will cost about 200-300 in the used market (SMC version). Fantastic lens, it's on my list to get.
Other considerations:
Now there's other lenses that have more reach (D-FA 100mm f/2.8 Macro comes to mind as a lens a lot of people love), and there are way more expensive lenses (like the FA Limiteds or the D-FA f/2.8 zooms - but those are designed for full frame, they will work on the K-7 but you'd probably get more benefit from upgrading your camera body rather than buying such expensive lenses).
The DA Limited primes come in the older SMC version or the newer HD version coatings. The SMC are probably 98% as good - sometimes about 100% as good like in the case of the DA 15mm where people can't see a difference in image quality but the older SMC version has better sunbursts.
That's about it for an introduction... there's a whole lot more than that to cover
But that should get you started on your decision making.