You've got to toe out the pads it sounds like..

Loosen the bolt that holds the pads to the calipers, line everything up (how the pad meets the brake track on the wheel) and then place a penny on the end of the pad towards the back of the bike. Pull the brake lever tight (as if you breaking) and then at the same time tightening the bolt that holds the pad to the caliper.

This should stop your pads from making noise. Its also possible your pads just need to be replaced if the rubber has become to hard.