Stopped the rubbing with two small washers between the adapter and the frame. Spaced the brake just enough to stop the rubbing.
Rear brake seems to be made of cheese, I stripped both the threads with barely any effort, so swapped out the bolts for longer ones and used a nylock nut and thread lock it was a tight fit but it's worked.
New pads have fixed all other problems, one finger skids now.
Did about 20km round town yesterday was very comfortable.