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450 EXC Possible Caliper Issue? (Rotor Rubbing???)

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I would like to preface this by saying that this might be somewhat of a rookie question, but never the less I am in search of answers.

For some time now I have noticed that the front brake on my 2003 450 EXC has been fairly squeaky when coming to stops, even though I have hardly put any miles on the bike since I installed new pads several months ago. Upon closer inspection to the front caliper I noticed that the outside stationary brake pad does not appear to clear the thin channel located at the top of the brake pad for the rotor to pass through (picture provided). I would also like to add that I have an extra front caliper for my model KTM that also appears to have the same "issue", and this caliper is also the one I will be posting photos of, instead of the one currently mounted on the bike. 

So, is it possible that this is the source of the banshee screech my front brake seems to emit whilst coming to a stop? If so, does anyone know of any fixes for this issue, or is it something that I just shouldn't be worrying about?

As a final side note, the only direct, let's call it, "performance" issue I have noticed is that my front brake is unable to keep the front wheel locked whenever I attempt to do burnouts. I could basically be squeezing the lever so hard that I feel like it's going to snap off in my hand, and the front wheel will either slowly roll, or sightly hop.

Thanks to all in advance for any help or wisdom given, it is very much appreciated.

Photo Apr 26, 8 50 07 PM.png

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Tough to tell from that picture. I put tusk pads on my 09 and they are quiet. A little screechy on a really muddy day mostly the rear.

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