You definitely need new pads; those are worn, dried out and way out of adjustment.
That being said, fietsbob is right, it's obvious you don't have the mechanical chops to deal with this and brakes are not the best place to start learning.
Go to your LBS, ask them to swap out your pads, and ask if they'll let you watch so you can learn...
__________________
Today, I believe my jurisdiction ends here...