DALLAS, May 7 (Ticker) -- Jason Terry and the Dallas Mavericks are moving on. Tracy McGrady again is going home early.

Terry sparked a huge first half to help add to McGrady's postseason frustration as the Mavericks rolled to a 116-76 demolition of the Houston Rockets in the most lopsided Game Seven in NBA history.

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The margin of victory surpassed the record of 39 set by the Philadelphia Warriors in an 85-46 rout of the St. Louis Bombers in Game Seven of the 1948 league semifinals.

The fourth-seeded Mavericks became only the third team in NBA history to win a best-of-seven series after dropping the first two games at home. They open the Western Conference semifinals at top-seeded Phoenix on Monday.

"All season long it's been about perseverance and this series couldn't be a better example of perseverance," Terry said. "This series stretched us," said Mavericks coach Avery Johnson, who showed his shrewdness in his first postseason series. "We were bending, but we didn't break."

Meanwhile, it is another early exit for McGrady, who has yet to make it out of the first round in eight seasons. The star came out cold in the second Game Seven of his career, missing seven of his first eight shots as the Rockets fell behind from the outset and never recovered.

"I am disgusted and I'm angry and all of that stuff, but at the same time, I'm not going to hang my head," said McGrady, who is 0-of-5 in playoff series. "I'm 25-years-old and I've got a lot more years in this league and I will be back next year. I will be back next year.

"All of this that I'm going through, is only going to make me tougher. I will never fold regardless of being bounced out of the first round for four or five years. I won't fold and I will be back and my team will be back. We will be back better and stronger."

McGrady showed his displeasure with 6:41 left in the second quarter after picking up a technical foul. Terry sank the free throw to give the Mavericks a commanding 49-25 lead.

"I don't think any of us saw a picture like this. I definitely didn't see that picture," McGrady said. "I think we came out too flat. Those guys had a lot more speed, and we couldn't defend anybody."

Never able to find his rhythm, McGrady scored 27 points on just 10-of-26 shooting while playing just the first three quarters. He scored 21 points on 7-of-24 shooting in a Game Seven loss at Detroit in 2003 while with Orlando.

McGrady failed to show up, but Yao Ming, often criticized for being soft despite his giant 7-6 stature, did. Yao played through early foul trouble and matched a playoff career high with 33 points and also grabbed 10 rebounds.

Terry, the Mavericks' best player in the series, again came up huge by scoring 31 points. The offensive-minded point guard scored 13 of his 21 first-half points in a 17-5 run to open the second quarter that gave Dallas control.

"My mind-set tonight was to come out and set the tone for my team on both ends of the floor," Terry said.

Led by Terry, who made 8-of-14 shots and all 12 of his free throws, the Mavericks built a 59-44 halftime lead, then stretched the advantage to 92-64 after three quarters.

The Mavericks led by at least 13 points the entire second half and the final score was the largest margin as they reached the conference semifinals for the fourth time in five seasons.

Josh Howard, who opened the game guarding McGrady, had 21 points and 11 rebounds for the Mavericks, who were playing their first Game Seven since beating Sacramento in the conference semifinals in 2003.

Hardened veteran Michael Finley also made his presence felt, making back-to-back 3-pointers to trigger a 16-6 run over the final 4:28 of the first quarter that gave Dallas a 32-20 lead. He made three shots from the arc in the period and finished with 13 points.

"It was important for us to come out and be the aggressor and use the home court to our advantage," Finley said. "We did that tonight right from the jump ball and we maintained throughout the game."

The Mavericks had little trouble finding their offense in the first quarter, when they made 11-of-22 shots and seemed to score at will. In Thursday's Game Six loss, they went a woeful 4-of-27 from the floor and scored just 13 points in the fourth quarter.

Dirk Nowitzki again struggled with his shooting but had 14 points and 14 rebounds for the Mavericks, who joined the 1994 Rockets and 1969 Los Angeles Lakers as teams to win best-of-seven series after dropping the first two contests at home.

The Mavericks shot 51 percent (41-of-80), made 26-of-28 free throws and held a commanding 52-33 rebounding advantage. Yao and McGrady were the only ones to score in double figures for Houston, which shot 35 percent (29-of-82) in getting eliminated in the first round for the second straight season. The other eight players to see action combined for just 16 points for the Rockets, who have not been past the first round since 1997.

"We just cracked," said Rockets coach Jeff Van Gundy, who drew a $100,000 fine, the largest in NBA history for comments about the officiating earlier in the series. "That was disappointing because our team had played well all year, and to crack like that in the biggest game of the year is disappointing."

"Defensively this was the performance I was looking for the whole series," Johnson said. "It was right on time." One of Johnson's key moves was to go to veteran Darrell Armstrong, who had played a total of 11 minutes in the first six games.

Stil quick at 36, Armstrong was called on to guard Mike James, who had provided the Mavericks headaches throughout the series. Armstrong helped hold James to just four points, 18 fewer than he had in Game Six. James also was ejected late in the third quarter after picking up two technical fouls.

"I felt good to be able to contribute the way I did tonight," Armstrong said. "I knew I was going to get the call tonight because of Mike James. Avery wanted to match me up against Mike James. It just worked out for the best."

"Give credit to a guy like Darrell Armstrong who hadn't played much all series," Terry said. "He comes in and frustrates the heck out of Mike James."