When I bought my Bug, it hadn't moved in five years and the shoes were rusted solid to the drums. If that was the case, trust me, there would be
*no play* what-so-ever!
Just a week or so ago a piece of my break bar (operating link) snapped off and fell down between my brake pad and the drum. That had a similar effect to what is being described. I think it happened when I pulled the hand brake and applied some pressure to that bar. By the way, those things are indestructable ... unless you bend one a little bit. Woops. ;-)
If you haven't done so all ready, you need to get into that drum and see what the hell is going on in there. I bet that parts fall out when the drum comes off. With your hand brake on, and your wheels blocked from BOTH sides (REALLY WELL), losen your four lug bolts, remove the cotter pin, and losen your 36MM nut. Thats a real bastard. My advice, invest in a long breaker bar (1/2 inch) and a 36MM socket to go with it. Now jack up the car, remove the tire, and remove the drum.
Release the hand brake at this point!!! Or the drum won't come off silly.
If the drum comes right off, then your brake pads were not rusted to the drum, and in fact weren't close to the drum at all. If they give you some resistance, get behind the wheel, and pry off the little rubber/plastic plug covers, and shine a flashlight in the holes. You need to find a little gear with teeth on it and work it with a screwdriver. Muirs book describes this procedure pretty well. He says to turn it 10 to 15 times. And if you haven't losened or tightened it (depending on what you were trying to do) then you were working in the wrong direction! ;-)
Take that drum off and see what's, what!
May the force be with you.
-Ray