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My father in-law has a 2002 Toyota Camry which he has owned from new. He has an issue with the Anti Locking Brakes on the car.
If he pushes hard on the brake pedal the dash warning light comes on and he has to turn the engine off to reset it. Also the brakes shudder and emit a metallic sound on slightly greasy roads. It sounds almost like metal to metal contact but are assured the brake pads are fine by our local Toyota dealer.
Have you heard of issues with this model ABS system?
Alistair
From the "Ask Jack" archives - 14 July, 2010
From your description of the shuddering feel and metallic grinding sound, this sounds very much like normal ABS operation, which will occur when braking hard, particularly on a slippery surface.
However, the warning light coming on and not re-setting until you turn off and re-start the engine is definitely not normal, and requires further investigation. It is likely that a fault has been recorded in the memory of the ABS control unit. Your local Toyota dealer should be able to "read" the fault using their diagnostic equipment, and rectify any problems accordingly.