In reply to minstmeat :
What he's saying is, the pushrod should have free play so that it's not already engaging the piston in the master cylinder. If you can't wiggle it a little in the cup that it pushes on, it's too long.
If it's too long, the piston is covering up the transfer port, and the pedal will get lower and lower because it can't allow fluid in from the reservoir.
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