I don't think its rust, there was a fair bit of rust on the discs but that came off straight away. Also that night I drove it I went through the mountains too, so I did more braking than your usual daily drive to the milkbar . So I guess that would cancel out rusty pads?
Any other ideas?
EDIT: In case you don't understand, the loud squeaking isn't only when your driving, it happens all the time, even when your not moving and just pressing the brakes on the spot. I can't explain it, it sort of sounds like a rusted spring being compressed.