by Warkton Tornado No.1 » Sat Jun 06, 2015 4:52 pm
If it's not the pads seated correctly, the disc moving freely, then I would remove the adjust screw,tab, locknut entirely for the moment.
Operate the lever with a spanner, tube whatever to ensure that it functions. If need be, pop out the circlip & remove it, again, for the moment.
Now, you must agree that there is nothing that can effect the function, side to side of the disc & pads & the wheel should spin freely.
With just the M8 'grub' screw, wind it in until the brake just begins to bind.
Rewind it, say, three whole turns.
Refit, if necessary, the cam, or operating lever. Give it a lever with your spanner or whatever. If all is well, the disc & static pad will have been pushed back across.
Repeat as necessary until the static pad is as far across as it needs to be.
Is the screw now clouting the window edges?
If so, your previously fitted pads are magically too thick or not seating as they should due to paint, or whatever.
If not, refit the tab & locknut & that's it.