Well RPM55 nailed it. I took off the caliper, then the rotor so I could look at the parking brake shoes. The rotor came off hard and I could tell it was rubbing on the brake shoes. So now we know what's making the noise but when I inspected the parking brake I didn't see anything out of the ordinary. The springs weren't broken and the shoes looked like they were in place. I wonder how they expanded? I turned the set-screw so that the shoes adjusted inward a bit but they still rub the rotor. Anyone know what the problem is with the parking brake? Could it be as simple as a cable adjustment? Hmmmm...

__________________
1987 300E
1967 Jaguar E-type Series I, 2+2