Hi pate13,
First off, a 700/Q49 is an outstanding score (it's right around the 90th percentile overall), so you really shouldn't have any "bad feelings" about this.
As far as what MAY have lead to a score drop, there are a variety of possible reasons:
1) GMAC has openly stated that your score on Test Day is within +- 30 points of actual ability, so you COULD have scored higher/lower just from a general statistical standpoint.
2) Your skill levels were measured by GMAT Company CATs that were not created by GMAC. If those CATs are even a little bit "off", then your scores wouldn't be 100% accurate.
3) There are always "variables" in how you take your CATs that will not "match up" with Test Day. There are obvious ones - skipping sections, taking the CATs on days/times that don't match the day/time of your GMAT, taking the CAT on a laptop instead of a desktop computer, etc. But then there are lots of little, subtle things too that might not be a match for what you experienced on Test Day.
4) At this scoring level, the GMAT gets really "sensitive" to little mistakes - just a couple of extra wrong answers, if they occurred in "bad" spots, could have accounted for the difference in score.
You now have a score that will likely make every Business School happy, so you've done well.
GMAT assassins aren't born, they're made,
Rich