2002 blazer rear brake problem

I put rear rotors and pads on my blazer. There were some alignment pads (small metal pieces)in the box with the brake pads. I tried to use these alignment pads but the caliper would not fit over the rotor with them on. The problem is that I smell the brake's bad and see a little smoke. What is the proper way to use these alignment pads? Are the alignment pads the problem?

Calipers, hardware, and mounting brackets should be replaced every time rear disc brakes are done. If the caliper piston is binding, the caliper needs to be overhauled. If the mounting brackets or hardware is rusted or binding, it must be cleaned and/or replaced. Easier, faster, cheaper, and less headaches just to replace the caliper and mounting bracket every time you do the brakes. They are available "loaded" (includes pads, hardware, mounting bracket and caliper!), take 'em out of the box, install them and bleed them... DONE! No more problems.