Hey dweenk. Thanks for the speedy reply. Yes - the brake arms do not open sufficiently to clear the rim. They were close with the old pads, but I had to re-seat the wheel b/c it was rubbing against the frame. Now that the wheel is centered and there's new pads, I can pull the arms open and it's fine. However, after breaking once, they stay close to the rim and rub.
The play on the back wheel is noticeable. You can wiggle the whole big by moving the frame. I'd say there's more than a little.