I couldn't edit my last post so I'll just provide the update here. I removed the spacers and replaced them with the proper size screws. The pads are indeed shot for the first 3/16" as would be expected. I'm headed to Leadville tomorrow to volunteer for the Stage Races anyway so I found a reputable mechanic that's in town for the Stage and 100 next weekend to give it an overhaul. I'll let you know if he finds any more "WTFs!" in the comments here after I get it back.
by WellHelloPhriend