Whats the trick to this...If I adjust it tighter so that it actually does something it has constant drag and if I back it off just enough so it doesnt drag, I end up with no brakes in the rear at all!...When I made my adjustment I backed bolt off 1/4 turn at a time.

 

Check the disk. Make sure it slides on the shaft freely. If not you can have this problem.

 

Try adjusting while holding the pedal down with you hand,turn adjusting bolt in and pedal will rise,stop when pedal is parallel with floor board (about 2" up from floorboard bottom.HOLD pedal down,tighten locknut and then try a couple "panic stops", should be able to stop with no drag if pads and rotor is ok. This is actually a better system than the newer hydraulic system as far as more pressure being applied to rear brakes. Usually you can lockup the rear tires easily! OPT

 

Thanks I will try that asap