Well it ended up being the cable, it was rubbing on the frame in between the two extra rubber protectors. Ontario winters did the rest of the damage.
[Broken External Image]:
It was not that hard of a job but it did take some effort, to pull the brake lever off/open, I had to attach a ratchet strap to the back of the brake cable/lever, and pull it to the open position, other end was attached to the rear shackle. Once that was done, removing the cable was pretty easy and replacement only took a short time after that. Finding the cable actually took some time, after several phone calls to local area parts stores I finally found one, a few places said that it had been discontinued.
FYI if you are adjusting the parking brake through the adjuster hole, turn up to tighten brakes, down to release brakes. :haveabeer: