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I second the motion that your fronts are fine with a sanded shim. While I'm in there I always clean the inner area of the caliper so the shoes won't get hung up, and I use the PFTE grease on the metal edges of the pads, which seems to slow the rust down in that area. I also use that red stuff (CRC Disc Brake Quiet) between the shims and the pads just to load the dice in my favor.
The rears are another story. I tried lots of stuff before I hit a solution. The official Volvo rear pads, which are overpriced junk, come with wonderful anti-squeal shims. I used these with to RPR pads and the noise went away. Sadly, I just put the Volvo pads on and they squeal ferociously on occasion. And they don't stop as well. Next set will be RPR, and I may change them early if the Volvo ones keep misbehaving. I use the CRC stuff and the PFTE on them as well. Be careful not to get the PFTE on the braking surface, and a little of both goes a long way.
Don't worry about the drag unless it's really strong or only in one spot, which means a warped rotor. If it's warped enough that you can feel it in the pedal, it might be a good idea to fit a new set of rotors pretty soon. The ATE "atomic" rotors have worked very well for me.
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