Just to bring closure to this thread. I purchased a new set of rear brake shoes to see if that made any difference. Shoes were the only thing I didn't triple check. Any suggestions i got from Stovebolt I tried but nothing worked. Unfortunately the new shoes did not fix the PB problem! The PB lever still hits the axle before engaging and the wheel cylinders are still screwed out way to far to get the slightest hint of a drag. I'm stumped! Thank you to all who helped. Looks like I'll be driving without a parking brake.
In my opinion, you do not have a parking brake issue. Given that your wheel cylinders are nearly cranked all of the way out in order for the shoes to make contact with the drums, leads me to believe that your issue is elsewhere. None of the parking brake parts can have any affect, nor can they overcome the cranked out cylinder screws. Don't know if that helps. Its just my 2 cents.
Thanks Carl. Don't know where else to look. Tried new shoes. No effect. Tried new cylinders. No effect. Measured inside of rear drum. Same inside diameter as a new drum (11"). Handy Andy and I have tried everything we can think of.