I have a 2006 xB. The rear brake pads are new and adjusted. The emergency brake cable is adjusted as tight as possible and it's still not able to hold the vehicle still when in D or R. It failed inspection.
The cable is connected to the levers on the rear brake system. What else could it be?

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Might want to check the adjustment of your rear brakes.

From the manual:

 

Thanks for your reply. I've already adjusted them & followed those emergency brake instructions. Going to have to put it in the shop.

 

Can you post the resolution to the issue when you find out what it might be? Be nice to have the reference should someone else have the same issue in the future.

 

He might have the brake shoes reversed.