I just replaced the front pads on my wifes 98 Camry and I am feeling dumb. I had a lot of problem getting the new pads into the calipers. The new pads are too thick to fit between the frame so one pad has to go down and back into the grooves before the other pad can be installed. The problem is that the springs keep coming out of the holes in the backing plate before the second pad is dropped into place. I finally ended up putting in one pad with the springs attached and then installing the springs in the holes before putting the second pad in. Needless to say there is not a lot of room to work in. I have replaced the pads before and I remember them being difficult but not this bad. What am I missing?

Perhaps you did not compress the cylinder cup fully into the caliper before installing the new pads. After you do that, you can usually push the spring-loaded (inner) pad into the cup first and then the outer pad slides in afterwards. If you did do this (usually with just a C-clamp and a large socket that fits inside the cylinder cup) and it doesn't compress freely and completely, then the cup may not be square to the bore or is somehow bound up. A new caliper assy will then be needed (rebuild kits are usually more trouble than they're worth in cost savings versus a new caliper).