Funnily enough, just finnished reading your blog on bessy, top stuff, sounds like you have been having fun. Nearly had a coffee soaked keyboard several times
Black diamond pads wont take much longer to bed in than normal, should feel fine after 100 miles or so, But they should NEVER sieze up in the caliper. something is muchos wrong here, I suggest a very carefull examination and reasembly of the pads and guide pins, with haynes manual in hand (no shame in that, I still have to, and I'm doing it for a living).
pay special attention to the parts of the callipers that guide the pads, dirt and rust can cause havoc here. scrape any crap off and finnish with a good wire brushing. Get the new pad you intend to fit, and place it squarely in position in the calliper, slide it back and forth in the way it would if you were applying the brakes, it should be free to slide with no effort, but also should not have more than a few thou slop in the calliper. If they are tight carefully file down the edges of the pad untill a nice fit is achieved.
as Pettaw, are the pistons in the callipers free? difficult to describe how to judge this but on a new calliper, you can usualy just about force the piston back with your bare hands, so if your in there with a crow bar theres probably something wrong !
Guide pins/ sliding parts of the calliper should be free to move with light hand pressure, and should be lightly greased. other than that, the problem is most likely somewhere else , possibles are an internaly collapsed rubber hose which can cause a one way valve effect, but this will normaly only affect one wheel, or possibly damaged master cylinder seals, seals past there best will often let go when the brakes are blead as the master cylinder travels much further than normal, also when you push the pistons back in the callipers it exerts a lot of pressure backwards on the master cylinder seals.
large intake of breath and cup of tea......
I recon it will be the pads not fitting correctly, by the way, if I recall, you used black diamond pads in an attempt to get a better pedal feel/ bite, unfortunately these will do the opposite to what you want, they are designed to opperate at temparatures the stock pads fall apart at, and they will have poor pedal feel and may provoke unnecessary soiling of interior furnishings if you ever had to do an emegency stop from cold, In your case genuine or brand name aftermarket would be best, or if you can find some, some old stock ones made of asbestos, just dont tell anyone I told you to !! and dont breathe !
Good luck