I called HydraStar on your behalf and they said the most likely problem with the caliper of the HydraStar Disc Brake, part # HSE7K-T1, not lining up correctly is because the piston needs to be reset into the caliper.
I also spoke with one of our installation experts, and he believes this may be the problem as well.
To reset the caliper, place a brake pad in the piston side and use a c-clamp like part # PTW5100 to seat it to push it in all of the way.
If this doesn't solve your problem,... view full answer...