The mushiness probably means you have air still in the lines. Easy to bleed out. The scrapping could be a number of things. Blaine would know better than me, but Id check and make sure you didn't bend one (or both) of the low pad indicators, make sure the dust cover isn't bent inward and touching the rotor and make sure your ebrake pads are adjusted correctly. Did you try the ebrake?
2000 - Sahara
1997 - Sahara