I did a major brake overhaul on my '89T2 last year just before DGRR-X, here's what I went with:
Concur with the Hawk HPS recommendation - I couldn't be happier with them. Better grab than stock pads, and a bit less dusty. If you shop around, you can usually get all 4 wheels done for a little over $100 online.
For rotors, I went with Brembo stock replacement rotors from Tirerack.com on all 4 corners. Cost was about $40~45 each. Another rotor brand I like is the Centric Premium series; recently used those for a major brake job on my '03 Protege5 daily driver, and to be honest I'm hard pressed to see any significant difference between those and the Brembo stock replacement rotors I put on my '89T2. The Centric rotors ran me ~ $20-30 per (for my MP5, probably similar cost for the '7s)
Pete
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