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.
I know what you mean.
The thing about a floater is that it'll retract until the pressure equalizes, in the OP's situation one pad is still in contact with the rotor. If he had a fixed caliper and just one set of pads remained in contact the problem/solution would be entirely different.
I've seen this happen where the brake fluid isn't compatable with the hoses, the pads won't release. After replaceing the hoses I've cut the old ones to see inside and they are all but closed.
The calipers' pressure would escape after pedal release until a certain value, it might have been 10 or 15lbs pressure required to push the fluid back thru the hose - I don't know - but once the pressure in the caliper reached a value equal to the pressure required to push it back thru the lines it would retract no further. On a floating caliper this would let just 1 pad remain in contact, right?
Again, Very hard to diagnose with out touching, any of us can be right.
