My best guess is that you have two things happening here. First you have a warped rotor, thats why it squeaks on and off as the wheel rotates. Secondly you either have the wear indicators installed improperly and/or your antisqueal plates and springs are missing, installed wrong or damaged.
Take your wheel off, remove the 14mm bolt at the bottom of the caliper, unbolt the 2 12mm bolts that hold the brake line to the backing plate, and swing the caliper up and away from the rotor. There are supposed to be two "V" shaped wires that go into the backs of the pads that keep the rotors pushed towards the center of the hub. There should also be some flat plates that go between the pads and where the caliper pinches them. Also make sure the two thin metal pad retainers are at either end of the pads and not bent so that they are coming into contact with the rotor.
here is the exploded view of all the front brake components:
http://www.cygnusx1.net/supra/librar.../br/BR_23.html
while you have this all apart you should have a parts store inspect your rotors to be sure they are not warped or below minimum thickness...
hope this helps!