Yep, that was the culprit. Seems the parts guy was smarter than I gave him credit for. He asked me if I was sure it wasn't the hose when I bought the caliper. I thought he was full of it. Turns out he has learned a thing or two along the way behind that counter. I was too embarassed to go back there for the hose and bought it at another store.

Thanks Stewart.

EDIT: a few notes here if you are going to change the hose. Spray the fittings with some PB Blast now. Then later, then before you remove it. I also needed some heat for the fitting on the line side opposite the caliper. I used a propane torch on low and slowly heated it until I could break the connection. I did this because I didn't want to boil the brake fluid or melt the rubber inside the hose even though I was replacing it. I removed the caliper side first to give the fluid someplace to go. Also, per the guys at our garage, I replaced both front hoses because as they said "if one is bad, the other one probably isn't far behind." That same fitting on the other side needed heat too. Good Luck.