Thanks for all the ideas! I will definitely check the e-brake as it is not a standard setup. Cant find any parts for the original setup here locally.
The shoes are all the same...the shoe linings is of the longer type so no shorter linings on the leading edge. Could this cause the leading shoe to be pushed of the anchor bolt when moving as the friction is too high? thereby causing the wheel cylinder to expand a lot and having the pedal drop?