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The brake light on my 1980 came on. As this is usually set off by the proportioning valve, I first checked the fluid level in the master cylinder. The back reservoir was almost dry. This is the reservoir that feeds the back brakes. Because of this, I checked both rear calipers: both were leaking so I replaced both and bled the brakes. The brake light still comes on as the pedal still comes close to the floor. When I pump up the brakes by pumping the pedal, however, the light goes out and the pedal comes up, but comes back on when I drive the car (the pedal also comes close to the floor again). Any ideas? Could this be the master cylinder vacuum booster?
I think I'd look at replacing the master cylinder. If it got really low, it's possible that the seals on the piston are cut. you might try bench bleeding the master cylinder and see if it's holding pressure.
When you get it pumped up and hold it, does the pedal sink to the floor slowly? Or does it hold? Could be as easy as still having air trapped someplace. What condition are the flex lines in?