David:
I suggested doing the rears because you have an obviously bad rotor/caliper on one side.
Yes, bad hoses will cause exactly this problem -- so will stuck calipers (as I found out on my Mom's old Dodge Aspen -- the plastic pistons collapsed and stuck, make it dive for the ditch pretty bad sometimes).
Just because you bought a rebuilt caliper doesn't mean it's not sticking. I'd test it by jacking up the front wheels and gently applying brakes. I'll bet one side spins almost free.
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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