foxbody brakes

Hey all. I am currently trying to get my caliper back on after a suspension overhaul. It looks retracted, though it the pads are still rubbing on the rotor. When I press the brakes, it moves very little. Is this normal? Am I being an idiot and missing something obvious? My car is an 86 5.0 AOD...

I gutted my proportioning valve and I replaced it with an adjustable one and it worked well for a few test drives (no leaks) and then I let my car sit for a couple months while I worked on it more. I glanced over at my brake fluid and it was obviously lower than it was before. Today I looked...