98 Amigo brakes question

I have 90k miles on my 98 Amigo. It has the original brakes on it. I started hearing a brake grinding noise recently. It wasn't bad but I wanted to be proactive so I pulled off the wheel to look at the pads.

To my suprise they had plenty of pad left but there was a very deep groove along the top and bottom edge.

This was caused by the lip on the rotor. Is this normal? A picture of what it looked like is here: http://63.100.44.62/mrogers/brakes.jpg. Thanks!

Mike

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MR
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