Rear brake squeal and lining gauge reading?

[tml1138]

So I got the GZ250 all ready to go for my wife, and it's running and looking good. BUT, it just started this squealing on the rear brake when you are coming to a near stop. A hard brake it doesn't do it...until you're nearly stopped. Glazing? Normal? Needs look at?

Before I tear into it, I wanted to ask, and a question on reading the gauge on the drum...the manual shows that the lining needs replaced when it's on the opposite side of the range than what mine shows. See pic below. Any input on this? Does it still mean I'm out of lining and need new shoes? Again, I'm not going to be able to get into it tonight and figured I'd ask before I pull the rear wheel off.

Thanks!