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\begin{array}{l}\phantom{500)}\phantom{1}\\500\overline{)766}\\\end{array}
Use the 1^{st} digit 7 from dividend 766
\begin{array}{l}\phantom{500)}0\phantom{2}\\500\overline{)766}\\\end{array}
Since 7 is less than 500, use the next digit 6 from dividend 766 and add 0 to the quotient
\begin{array}{l}\phantom{500)}0\phantom{3}\\500\overline{)766}\\\end{array}
Use the 2^{nd} digit 6 from dividend 766
\begin{array}{l}\phantom{500)}00\phantom{4}\\500\overline{)766}\\\end{array}
Since 76 is less than 500, use the next digit 6 from dividend 766 and add 0 to the quotient
\begin{array}{l}\phantom{500)}00\phantom{5}\\500\overline{)766}\\\end{array}
Use the 3^{rd} digit 6 from dividend 766
\begin{array}{l}\phantom{500)}001\phantom{6}\\500\overline{)766}\\\phantom{500)}\underline{\phantom{}500\phantom{}}\\\phantom{500)}266\\\end{array}
Find closest multiple of 500 to 766. We see that 1 \times 500 = 500 is the nearest. Now subtract 500 from 766 to get reminder 266. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }266
Since 266 is less than 500, stop the division. The reminder is 266. The topmost line 001 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.