completed brake job 85 380se

[instigator]

i just completed the brakes on my car front and back new discs on all 4, i've got one problem, the front brakes are draging (takes a little effort to move wheel) the discs are ATE and the pads are PBR organic (asbestos compound) i really had to work at getting the pads in (the pic of the two guys in the garage saying it'll fit comes to mind,while banging on a battery)i drove around hopeing it would seat the brakes but no luke they still drag.

my question is, is it going to hurt the discs to let it drag until the pads wear a little (i know its building heat, but its not that much, is it?) so any of you brake gurus can give me some good news about what i should or can do would be appreciated thanks