Hy mtcb, I just found this thread, do you have a clearance between the pedal linkage and the master cylinder piston, the piston must be allowed to return to the fully released position in order to uncover the compensating port, without that port uncovered the brakes will not release. You should adjust your brakes up to where they should be, long wheel cylinder travels are harder to bleed, and they may cause the pistons to pop out of their bores, or get cocked at the end of their travel, hope that helps.
