Right above my clutch lever there is a little silver lever that has the letters PKB on it. I figure it ment parking brake but if that is it how the hell does it work.

 

It is the parking brake. If it all works, (which I doubt because a 2 year quads braking brake usually doesn't) pulling in the the lever with the clutch works a cable down to the rear brake. That would turn an arm applying the brake. It is the same as newer 300ex's, check out Honda's sites and get a blow-up of it.

I have found when it is adjusted tight enough to hold it wears the pads out.