I loosened up the axle pinch bolts and moved the wheel over a few thousandths and the rotor no longer rubs on the caliber. I rode it like this and the improvement in front braking performance (with new pads and the steel braided line) has improved dramatically.
It is very possible that the pins are gummed up. Havn't taken it apart as of yet.
Posted a few pics, BDI, hopefully they help.
Thanks for the replies. B.O.