First, thanks everyone for ideas and suggestions.
The car is back. They changed the pads and rotors again. He says they used the think MB paste (he called it glue) this time to reduce vibration. I asked him about shims at the back, and he said they do it only on trucks, cars shouldn't need them, so no shims yet. He also said that the car was pulling to the right earlier on, on hard braking. Now its braking straight. Is that any indication of what might have been wrong earlier (frankly, I didn't notice that earlier, but maybe because I never jammed the brakes).
Anyway, I have driven is about 20 miles, it seems OK (now that I have said it, wait till it squeals again!!). My wife is driving around town today, so by the evening I will know for sure.
just one thing - the brakes feel very soft and mushy - is that a problem? Also, the brake pedal depresses a little more than before. Braking is OK, except that you have to press a little more than before. I am hoping this would get corrected a bit once the pads and rotors "break-in". Let me know if my thinking is wrong.
Well, I shall let you know what happens either ways!