I've got an '03 Wrangler with 108K miles. Got it at 103k miles about 10 months ago. Front disc, rear drum brakes. It needed rotors turned when I got it (front end wobble when applying brakes). I bought new rotors and pads, replaced. All good for about 2 months and right front caliper locks up going down the highway - aghhh the smell of burning brake pads in the morning. It didn't lock the wheel, but I got pulled over and was greeted with wifts of smoke from the right front fender.
Hit the brake pedal a few times, the caliper loosened up. Went and bought brake fluid and new hoses. Replaced all three hoses, completely bled brake system, to include replacing master cylinder (it was too nasty to clean, and rebuild kit not available).
Drove for 6 months no issues until one day 30 miles away from home, the right front caliper hangs up again. Smoke and smell all over again.
Limped it home, went and bought rebuilt calipers for right and left front, decided to go ahead and put shoes on rear, get drums turned. Only to find drums were not turnable, and looking inside of wheel cylinder boots I found brake fluid. Two new wheel cylinders and two new drums, more brake fluid and my brakes are rock solid today - with no signs of either caliper hanging.
Lesson learned while shopping for calipers - they are using plastic pistons in the brake calipers now, as opposed to their being metallic. I'm not sure which is better, I can see both sides of the arguments (heat retention, abrasion). But being old school, I chose to go with metal piston calipers (never had a metal caliper piston seize).
Old hoses can fail internally, sometimes failing in such a way that hydraulic pressure can move from the master cylinder to the caliper or wheel cylinder, but not back, causing the caliper or wheel cylinder to cause the pad or shoes to drag.
My advise - get a set of new or rebuilt calipers and new hoses all around (LF, RF, and rear over differential), and 2 quarts of Dot3 brake fluid. If your mastercylinder is full of muddy, dark brake fluid, rebuild or replace. Do a complete purge of the brake system starting RR, LR, RF, LF until you get clean fluid at each wheel. You should be good to go after all this.
BTW - Whenever I do pad replacements any more, especially when I get a pulsating pedal when applying brakes (meaning warped rotors) more often than not it's just easier to get new rotors so I don't have to wait on the local machine shop to turn the one's I have. My time is worth too much to have to wait around. Having everything on hand when I start allows me to get started and done - not to mention not having to worry with the machine shop contaminating the caliper bearing hubs (not a problem on TJ's as the rotor is separate).