Rear Caliper Piston Not Going Down

Hello all, I have a 96 Duratec 24v (if make a diff). ONE of my rear disc caliper piston won't go all the way down. I turned the piston clockwise, went down into the caliper, but not all the way 'cause my pads won't fit.

I have attached two pics, how it should look and my problem. Also, is there a way I could turn the threaded rod the piston screws onto? Makes any sense?
http://mollossmaster.com/dani/caliper_org.jpg

http://mollossmaster.com/dani/caliper_mine.jpg

why is the piston out of the bore??? Do the pads not fit over the rotor when they are installed into the caliper??? Piston only has to be flush and the little slots for the nibs lined up, shouldn't be overly complicated..If the pads installed don't fit over the rotor, then the lip on the rotor edge must be turned down, or just replace the rotors, I think nowadays most do.

I suspect, as TaurusKing mentioned, that you did not have the slots in the piston lined up with the tabs on the brake pad. That would cost you an 1/8 inch or more.

Unfortunately, now that you've removed the piston from the caliper, your best bet is probably to replace the caliper with a rebuilt unit and flush and bleed the entire braking system.

-Rod

I took the piston out of the bore, because I couldn't get the piston to go down any further. Therefore I took it out to investigate the bore.

My other caliper (driver-rear) went down further and there was plently of clearance for the pads. More than 1/8 inch as Shorod suggested. Also it's so tight with the piston sticking out, that if lining up the pads with the piston "grooves" as TaurusKing suggested (if I understood correct) will not make a difference.

If the piston is out of the caliper, why is that a bad thing? I could screw the piston back it, after putting the rubber boot. Bleeding will not be a problem, since on the topic, is it furthest nipple from the master cylinder?

What my main question is; Is there a way to screw the bore further down? My other caliper's bore (threaded rod) is further down/in, that's why the piston goes further down.

Thank you

i'm thinking like the other guy's get rotors turned or get new one's..or buy a new caliper...good luck.

Well I decided to buy a rebuild caliper for $117 CDN (with core). I thought might as well spend the money and I'll know it will last. No point in trying to fix it time after time

Thanks for the replies :)