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<E34> Brake questions

Well, after about 3 months of searching the Bay Area, I've basically given up on
locating a clean, straight, non-red 535is with less than 120k miles, so I am now
looking at E34 535's.  I drove one last week with 97k - it ran great (including
the idle), very clean in and out, with all records, at a very good price (the
owner is asking 13k, I think I can get it for less than 12k.)  The only problem
was what appeared to be completely warped rotors.  The brake peadal would
pulsate regularly, stopping from any speed.  This would not go away until the
car was stopped.  Am I right in assuming that the rotors/pads need to be
replaced all the way around, or could this also be a suspension and/or brake
hydraulic problem?  There is no corresponding steering wheel shimmy like what I
have experienced with the e28's that I have driven, so my guess is that this is
isolated to the rotors and is a reasonable DIY job.  Any feedback from E34
owners who have experienced similar symptoms would be appreciated. 

Thanks,

Kevin Barcellos