I knew the red brake light was going to drive me crazy! While trying to clear the light i decided to experiment with setting and releasing the parking brake. I set the brake by pumping the pedal and then tried to release it by shifting in to drive, It didn't release as anticipated. I used the manual lever which released the parking brake pedal but i don't think the actual rear brakes released. After I drove the car for about 20 minutes, the rear wheel covers were so hot you couldn't put your hand on them! I could smell that they were very hot. After the brakes cooled I jacked up the car and could manually rotate each wheel. I took off one wheel to look at the caliper and the large spring which I think is associated with the parking brake looked very compressed, but I couldn't get any movement out of it or the lever. Can anyone offer any help on how to tell what is going on and how to definitely make sure the parking brake is released?

The lever that the park brake cables attach too is returned to the cast in rest on the caliper by these springs. You might try to relax these levers by loosening the park brake cable adjuster where the 2 cables meet under the car. I'm thinking the cables are corroded and are not retracting fully. The rear pads are adjusted for normal wear by consistant use of the parking brake. Lack of parking brake use can sieze up the adjusters within the caliper. This system is the same on Eldos and Sevilles so you might get a service manual to walk you thru it.

Problem solved. Went back in shop for some lubrication and exercise. No more warning light. No more overheating...I hope.