Who has Dr. Diff 8 3/4 rear discs? Pt. 2

The distribution block and the T at the rear axel look like the ones that are on my 68 Barracuda, and are not causing brake issues, so your problem is not likely to be there.
I do agree with the comment above that the rear pads / rear caliper need to be adjusted. I also had to use a thin washer set on each side to center the pads-caliper to the rear disk.

. Cass just emailed back and said that the park brake cables are routed wrong and may be kimked. they need to go under the housing. So I'll change that also.

Where did you put the thin washer? I know th kit came with some and I did use them. Was it where they mount to the bracket, effectively bringing the pad closer the the rotor?