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Dennis,
Chances are the camming mechanism in the caliper that applies the pad pressure when the cable is pulled is out of adjustment. There is a limit to how much movement of the pads the mechanism can produce. If it's adjusted two loose it won't apply the pads. You may also have too much slack in the cable assembly. As I recall, the single cable running from the E-brake handle runs to a screwy union just over the differential. This union applies pull from the handle to the driver side caliper cable which is pulling against the passenger side cable ( a lot of places for slack). There is an adjustment screw at that union to take up cable slack, you may also have adjustment at the E-brake handle as well.
I'd start at the caliper and apply the E-brake on one wheel by working the lever arm the cable is attached to and rotating the wheel. If the wheel locks up, then get some more slack out of the cables. If the wheel won't lock up, then the cam mechanism needs adjustment. It can be done by hand, or (I believe) they are designed to self adjust. I'm not sure whether it is by backing up and applying the brakes like an old drum brake setup or if there is some other procedure using the E-brake handle. I can look it up in a manual if it would help.
Steve
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