I hate to pull up a dead thread, but thought I'd repost for anyone searching in the archives.

Thanks to everyone here for all the advice, what I ULTIMATELY ended up doing was this:

1. Got a new MC / SC / line.
2. Hooked the new line up to the new MC, filled the MC and put the other end of the line in a jar of brake fluid.
3. With the reservoir on the MC open and the nose pointed down, actuated the push rod of the MC multiple times until I was satisfied there was no air bleeding back in to the reservoir or out into the jar.
4. Filled the slave cylinder with fluid (this takes a while, the sucker really holds quite a bit of brake fluid) until I could see fluid in the port. (It's also messy.)
5. Connected the slave cylinder hose.
6. Tilted the slave cylinder so that its nose was down and retracted the pushrod by pushing it against a wood block on the ground VERY slowly. Had a helper watch the fluid level in the master cylinder. Every time an air bubble came out, the master cylinder would pretty much puke. Keep the fluid level up.
7. Once my helper was satisfied that no more air was coming into the master cylinder reservoir, I pushed the slave cylinder down and reclipped the shipping band so it would stay retracted for easy install.
8. Install the assembly on the car, making sure there's minimal freeplay in the master cylinder pushrod.

At this point, I checked the pedal. No hangup - ANYWHERE in the travel. Started the motor and ran through the gears at an idle (1 - 2 - 3 - 4 -R). Did this five or six times, making sure to let the clutch out in neutral now and then to verify.

Road test was GREAT, clutch engagement was very far off the floor. Didn't have to "drive it off" at all!