Remove the road wheels, clean the exterior of the calipers. Remove the split pin from the retaining pins on either side and then remove the pad retaining pins and anti rattle springs. Remove the brake pads and clean exposed parts of pistons using new brake fluid. Wipe away excess with a lint free cloth. Using a piston clamp, press each piston back into its bore ensuring that the displaced brake fluid does not overflow from reservoir.
Refit the new brake pads, retaining pins and anti-rattle springs, using new split pins to secure them. Apply the service brake pedal several time to locate pads. Check fluid reservoir and top up if necessary using correct grade of fluid.
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Can you clarify if it's a 300-TDI or a TD5, as IIRC the TD5's didn't start till the end of the 98 model year.
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