OK. I give up. UNCLE!!
The rear brakes on my 67 bug have frozen. (Yes the emergency brake is off ...)
When I started trying to repair it, I couldn't get the brake drum off because the brakes were "on" constantly. After trying several ways to get it loose, I tried loosening the bleeder screw and suddenly the wheel started turning, indicating that the brakes were off and the drum could be removed.
After checking out the wheel cylinders (making sure they weren't frozen and/or dirty on the inside), I tightened the bleeder screw and had someone press on the brakes. The wheel cylinders extended fully and pushed the brake pads outward. When my friend took her foot off the brakes, the wheel cylinders didn't return to the "off" position. The return spring was in place and seemed tight enough, but it was only when I loosened the bleeder screw that the wheel cylinders came to rest in the "off" position.
It's almost like something in the brake hydraulic system is acting like a one way valve, allowing fluid pressure to go to the cylinder, but not allowing it to flow back out of the cylinder. Is the master cylinder broken? I don't know: I've never heard of anyone having a problem quite like this.
Thanks for any insights/suggestions.
Chip San Francisco, CA