Britcon and ojh, your suggestions do make sense, but the issue is with the outboard pad, not the inboard. That would make it a slide pin or hardware issue rather than hydraulic. Bad part is that we're trying to diagnose this over the internet, rather than in person, and can only really give guesses as to what the culprit could be. Could be something as simple as needing to drive it to get the pads seated in and cycle the caliper on the slides to get them to move freely.
