Well, the Bug now has rear brakes. My friend from Caterpiller (took a suggestion) brought over his 1" drive ratchet with 3' bar and we knocked them loose. (Yay!)
We found the adjusters frozen, both rear wheels had one adjuster in, one out. The shoes were trashed (and strangely enough, ground on one edge - on purpose). One drum was worn so bad, it had a 1/8" or better lip - hardly any metal left. Luckily we found one auto parts that actually had a rear drums in stock...so now it stops on a dime and gives change.
Now it's ready for licensing. On the road again...