I replaced the cable since the old one had been a nice exhaust hanger and pretty much melted/rusted the thing. After replacing this I still had nothing.
So I got me some new pads and seals and dug in to a bit of a brake job. The rotors were in good shape so I didn't have to mess with them. I found that the pads were pretty new so this problem hadn't been around to long. What I found was that the spring washers (I don't know what else to call them) that go on the threaded shaft/plunger thingy that the hand brake actuator pushes on were all turned the same direction. Being set this way there was no way that the plunger would be pulled out since there was no more spring action. I set them back to the alternating pattern and they work pretty good now. 
The really disturbing part is that I think the PO had this work done, 'cause he didn't seem to mechanically inclined when I met him.
Joel
Sorry I didn't think to take any pictures.
