556,
Here are some thoughts for you.
Based upon the description of the problem you are having I would try the following;
1. The master cylinder has two pressure relief holes, one for each part of the "duel safety master cylinder". As you release the pressure on the brake pedal the brake fluid should squirt up into the resivoir, or at least cause the fluid in the resivoir to swirl, due to the release of pressure and the return of the fluid to the resivoir.
Have an assistant apply and release the brake pedal. When the pedal is released you should see the fluid return to the resivoir.
If the fluid is not returning to the resivoir, or returns with very little "stirring" of the fluid, then the hole is plugged (partially or completely).
If these holes are plugged up the pressure on the brakes is not released, thus they will drag. If one hole is plugged then one front and one back brake will drag. (The master cylinder is split so that pressure is applied to one front brake and the opposite rear brake by each of the two sections)
Use a small piece of wire to clean out the holes, but be careful not to get anything stuck in the master cylinder.
2. You could have brake calipers that have the pistons "cocked" in the bores and sticking. Having more than one stuck at the same time would be unusual but it does happen. This would necessitate replacing the calipers.
3. You may have a broken brake pedal return spring, or the return spring has become weak due to age. This would not cause the brakes to stay applied, so it would be a seperate problem. This is a relatively common problem and requires replacing the pedal return spring. (Under the dash)
4. The rear wheels should spin freely when the emergency( or parking) brake is OFF. There will be a little drag on the brake disk because there is a small amount of static pressure on the brake lines at all times, but it should not make the wheel hard to turn. If the wheel is hard to turn and the pressure relief holes are clear, then check your emergency brake cable adjustment.
5. You could have brake hoses that are swollen on the inside (due to age or contamination) and not releasing the brake pressure. This is also a common problem and would require the replacement of the rubber brake hoses.
6. It would be a good idea to pump fresh brake fluid through you brake lines if it has not been done for more than a couple of years. The recommendation is to do this at least every two to three years.
Use a brake fluid that is a "Low Moisture Activity" brake fluid such as Castrol LMA, or ATE "Blue" or ATE "Gold".
(ATE is the brake fluid recommended for BMWs). The aforementioned brake fluids are LMA fluids, and have high heat ranges. Ford also has a high performance brake fluid, but it is expensive and usually has to be ordered.
Interestingly enough most Ford dealership mechanics do not know about this!
NOTE: the recommended brake fluid is DOT 3. DOT 4 is a higher heat range fluid and is perfectly compatable with our brake systems. DO NOT EVEN THINK ABOUT DOT 5 (silicone fluid) as it is NOT compatible with the system components (period).
Just some thoughts, rangerj