They are a hydraulic brake yes, not power fill or power assist though, just straight manual hydraulic brakes. Make sure the pedals are returning all the way and there is no pressure on the brake lines.
Crack the bleeders open until there is no more oil under pressure, close the bleeder and try driving it without stepping on the brake pedal. If they are not dragging at this point there is a problem with the master cylinder most likely. If they still drag when you are absolutely sure there is no pressure in the system, there is something wrong with the brake linings/piston/retractors. If there is or has been any water in the oil at the back, your linings are probably toast.
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