BBay:

Something is wrong with the master cylinder. Some fluid movement is normal, but it is usually just upward flow as the pistons move forward until the fill orifice is covered. I don't remember fluid coming out on the upstroke. I would see if you can generate pressure at the fittings on the cylinder. If not, remove and disassemble, sounds like something isn't right way round in there.

Paint will be fine if you imediatly was down with copious quantites of soapy water to remove the glycol before it softens the paint.

Peter

__________________
1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!