Yep, I found a similar problem with mine. Looked like the stainless lines rusted out, cylinder got drained and went to crap from there.
I started this job thanks to this thread, and was amazed to see that my old drums were 10x worse than the pics in this thread - there is no way I had any brake control left, even if the stainless hydraulic tubing wasn't completely rusted out
Anyhow, I also bought the Kodiak disk brakes and new galvanized hubs (for the non-brake axle) and got everything installed with only a few minor issues. I was going to get the Tie-Downs but after doing a little research, there were lots of horror-stories and I didn't want to take the risk - so I paid a little more for the Kodiaks.
I discovered that the actuator on my trailer was welded to the frame and there was no way I was getting it off. So I called Eastern Marine and they were able to help me get what I needed all together. They didn't advertise it, but they had a version of my existing actuator (Titan/Dyco Model 60) with a master cylinder that was designed for disk brakes.
I also used a manual reverse lock-out valve, rather than one of the solenoids that mounts to the master cylinder. My car and my friends with trucks don't seem to have the 5th pin that is required for the reverse lockout solenoid. Now I can just open/close a valve when I need to enable/disable the brakes and it will hopefully be one less thing to rust up, or have wiring problems, etc.. down the road.
I only trailer twice per season, so simpler was better.
Again, thanks to this thread, I was able to do this myself without any problems, and I have never done anything like this before. I also understand exactly how the actuator and all the components work now, which will help with any future problems down the road.
I've got to say, once I had everything installed, the system primed, etc.. it was a great feeling to engage the brakes as a buddy spun the wheel (up on a jack).
-- Tom