yes you are correct. I am not sure if it can be lubricated but it sounds like you might need new calipers.

there was an updated spring but I beleive your 98 should already have those installed


- 95 Mystique LS - Zetec/5spd - 99 Contour SeVT Sport - Duratec/5spd Official NE-CEG Contour/Mustang Family