Brake pads bad?

If it were mine (I'd have 10" brakes, but, I digress) I would tweak that spring, put the drum back on, and drive it. Just make sure that drum sits flush with the axle flange. Looks like your studs have been changed at some point and the shank is a bit longer and thicker than stock. Did the axle shafts and drum get redrilled oversize?