I ran my stock pads on the track until they started disintegrating due to excessive heat; they were white around the edges and chipped/chunked. In addition to doing that, I'm in agreement you probably boiled the brake fluid.
The red BRAKE light is related to the brake sensors; the sensors are designed to trip when the pads get down to a certain thickness (the sensor wears down with the pad and the connection eventually breaks, triggering the light). The sensors also trip however due to heat.
I concur with ashmostro; get the pads replaced and the sensors while you're at it (sensors are cheap). The rears might be OK (the front brakes do most of the work), but double-check. I'd also recommend a brake fluid flush, especially if it's been a while since your last one. Boiling the brake fluid (and just time in general) reduces its effectiveness. Consider going with high-temp brake fluid, if you're going to be driving the car hard. It won't boil as easily.
Quaife LSD, JRZ RS Pro, JRZ camber plates, Eibach ERS, full M3 susp, custom toe arms, Powergrid end-links, SS brake lines, brake ducting, Michelin PSS, UUC SSK, ETS FMIC, ER CP, Perf. Exhaust, VAC RSIK + Sparcos; work by VAC Motorsports in Philadelphia