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Sounds like the parking brake shoes have been fried by improper adjustment -- you adjust them with a star wheel through a lug bolt hole, not with the cable! Using the cable will wear one end off the shoe, and the lining will come off. Also possible it's just old age, or the shoes are off the retainers.
Easy enough to check, just jack it up, pull the rear wheels, remove the calipers, and pull the rotors.
At least you don't have a fried rear end.....
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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