Thanks to everyone that chimed in.
After examining/cleaning the seals, scrubbing/buffing the pistons, cleaning the inside of the caliper, and getting all the peeling paint off the new
brake pads, the caliper still leaked. Slower than before, but a leak is a leak. So got a new caliper and all is fine.
Would have saved time and aggravation going that route from the beginning, but at least now I completely understand how brakes work and
can take apart/put together calipers in my sleep. Also got lots of practice bleeding the brakes, as well as my french, if you know what I mean.
Big thumbs up to oemcycles.com on Ebay. Asked them about the peeling paint on the pads (purchased from them), they quickly responded w an offer
to refund or replace. After rjs987 explained how it likely happened, I realized it was user error, not any defect of the pads. I told oemcycles that, and
since it was my fault I wouldn't return them.