Do the rotors have a "lip" on them from wear? I didn't believe that high strength metal would "flow" except when heated with a torch until a front stub axle on the '83 300D that had overheated obviously "flowed" enough to prevent a new bearing race being installed. (The problem was solved by using a Chinese bearing & race that was a looser fit.) If there is a lip that makes the disc thicker than normal, that could be the problem although it's probably a far-fetched possibility.

One thing you might do is mike the new pads, take the micrometer to Autozone and mike their cheapest set. If the cheap set is significantly thinner, you might try installing them until you have more time to solve the problem.
Gerry
-------------------------------------------
From: "Allan Streib" <str...@cs.indiana.edu
Had the pads out again and was on the pistons with a pry bar and a C clamp... they are definitely fully retracted.
Allan
1983 300D

" <arche...@embarqmail.com> wrote:
Thought I had the same problem on 123 calipers.  Stuck a large
screwdriver in and levered the piston further into the caliper.  After
that the pad on that side was tight but it went in with a little
tapping and repositioning. The other side seemed to be stuck and
didn't want to move with the screwdriver so; IIRC I stuck in a 3/8"
breakover handle with the end cocked 90 degrees and twisted it with a
crescent wrench.  It broke loose and retracted and I was able to get
the pad in. Gerry


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