Richard, whike I agree with Nolan that all of the things he's suggested can
cause low pedal and should be checked before you spend the cash on a new
master cylinder, I'll still put my money on it being a bad master cylinder.
I've personally had, and have had friends who have had the same symptoms as
you describe with the cause being the master cylinder seals. They WILL
sometimes pump up when a seal goes bad. So my advice is to check all those
things, it certainly can't hurt to know your entire system is in good shape,
but plan on rebuilding/replacing the master cylinder.
Take care!
Bill J
'68 GT8
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