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Trouble with Blowfish Rear 13.8 Upgrade

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I installed the Blowfish billet brackets to upgrade to the 13.8" rear rotors and have had nothing but a headache. I asked Steve for advice and he responded immediately....not blaming his bracket as it's a thing of beauty. The instructions recommend some grinding of the caliper for clearance but I have lots of space all around the rotor so I did not see any need to grind anywhere. But the inside pad (Pagids) is not sitting flush on the rotor. The top half is pressed against the rotor while the bottom is in the air. So when I am driving the rear inner pad is "braking" all the time and I can feel and hear it. I have power-bled the system twice and the SS lines are fine. I also noticed the parking brake is tight right from the start. What am I missing? I am ready to go back to stock if I have to but others are using this with no issues so I want to make it work.
 

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