If you have to back off on the adjuster that many clicks to get free wheeling you may have gone to a point beyond the through of the magnet arm and thus Poor Brakes if brakes at all.
Since the rear shoes are burnt and need replaceing you will find it is cheaper to buy complete new backer plate assemblies on line then shoes from a local shop.
WBCCI 12156 AIR 3144 WACHUNG TAC NJ6
2004 Excursion 4x4
1991 34 ft. Excella +220,000 miles, new laminated flooring, new upholstery, new 3200 lbs axles