Thanks everyone, I'll try to respond to a few posts in one here. I'd like to think I didn't depress the brakes, I understand the consequences, but anything's possible I guess. its not really grabbing just making intermittent contact. I have tried using my hands while it is deflated but I can't seem to get enough leverage to pull the bead out, which is why I thought quickly inflating it could work. I rode on it for just over an hour yesterday including a few drops and roots and no problems. I could definitely see the tire was wobbly in front of me. Tonight I'll give it the soapy water trick. Thanks everyone!
Quickly inflating usually doesn't work to pop the bead into place. Soapy water does usually work but it may require you pumping your tires to the max pressure (sometimes beyond, watch out if you try that because it can do some serious damage to you and your hearing) and it may require repeating this over and over. I do like simple green as the lubricant for this task as it dries up pretty well.
Inflate slowly as you get the tire to start to make contact with the bead of the rim; this is the time when you have the most control over where the tire seats when the tire has very little pressure in it. Once you can't move the tire by hand it's time to start (carefully) pumping up the tire. With a sticky bead and lubricant three things can happen:
1. Nothing. The bead will stay in the same place even as you pump up the tire. This sucks and you'll have to deflate, relube, and try again. If it continues to fail seek professional help. Park makes a tire plier which may be required to help you, it's very expensive and some bike shops may have it.
2. The tire pops into place. This, obviously, is what you want. Sometimes it's a slow creep (keep a very close eye on things and make sure things don't creep all the way to number 3) and sometimes it's a violent pop which is terrifying (to anyone who has had a tire explode in their hands, probably less so to someone who hasn't experienced said explosion). Inspect the tire, make sure the bead it seated all around both sides of the tire and proceed with more pressure or dialing back the pressure to your riding value.
3. The tire explodes. I don't wish this on anyone; sometimes the tire is ruined, always the tube is ruined, and usually your hearing is ruined. If the bead slips off of the rim before things seat then the tire explodes. This most frequently happens on cheap or loose tires. If you see your tire start bulging in one spot stop pumping immediately and start dumping pressure as fast as you can. This is usually a sign that the tire is slipping off of the rim and about to blow. If you save it, inflate more slowly next time and check more frequently that the tire is staying put.
Make sure you avoid getting any soapy water on your rotor and if you do get anything at all on your rotor clean it with isopropyl alcohol before you install it back onto the bike. Anything on the rotor will contaminate the pads and cause you to have reduced stopping power and/or noise.
As for the brakes, are you sure you have the wheel in straight?