I just put new rear calipers on my 1999 Mercury Mystique. The calipers do not seem to be adjusting up to the rotors. I have long pedal travel before the rear brakes engage and if I give it a little pump, I get a hard pedal. The integrated park brake mechanism works fine but when released the pads have almost 1/8" to the rotors. The brakes have been bleed twice. Would it help to bleed it while the park brake is on?

 

Try setting/releasing the E-brake a couple dozen times.

 

needs more fluid in the lines

 

I'm pretty sure your rear brake system is the same as our '95 Contour. On the rear, there is a caliper retracter that has to be released after the new pads are installed. Could be your retractors did not release. Here's a link to an online repair manual for the rear brakes:
http://www.autozone.com/servlet/UiBr...3d801bd90d.jsp