steve,
thanks for the replies.
just to coment on the fact where the labor is concerned regarding the troubleshooting, and to mention that i didn't play 'cheap' trying to figure this out here's what has been spent on the car since the last year trying to figure out this problem. the price includes both the parts/labor and all are at the dealer with the exception of the extra brake bleeds that i had to take elsewhere on top of paying the dealer just to make sure there wasn't air in the system.

intial diagnosis 2hrs : 196
change m/c : 650
further diagnosis : 98
diagnosis charge 2 months later : 196
change brake booster: 1570
diagnosis : 98
three brake bleeds : 266
diagnosis charge: 98
change rear calliper: 400
bleeding of the system for ABS ( i was told this is different that the regular bleeding) : 98
ABS light came on therefore diagnosis of ABS : 196
ABS accumulator and hose change : 870
the $870 charge is only two weeks old.

I don't even want to add this all up because that will just make me sad. I have receipts for all the above and can even scan and paste them to prove it.
All of the above, only to fix a spongy pedal which is still the same as day one. nothing, I mean absolutely nothing has changed even after everything they have replaced above.
So in defence of the statement I made where I said that it'ss a shame where the owners have to spend money on "expensive"parts because the shops just don't know how to troubleshoot the system would be kind of valid.

the sliding pins were also addressed by the shop. atleast I've been told so. the shop stated that they greased all the pins and make sure that there was proper sliding and that that the pins were straight.

the spongy pedal is not like that 100% of the time . If I engage ABS myself by driving it in reverse and slamming the pedal, the spongy pedal goes away instantaneously. perfect braking for the rest of the day or so. but then all of a sudden it goes back to the old spongy ineffective pedal with increase travel as well.
Steve, I've read most of your articles regarding your shop and the tech tips that you've posted. If you're willing to take this up as a challenge, I would be glad to arrange of shipping of the car to your shop. granted that might cost around 1600 just in shipping charges, I am willing do to that after spending the thousands already to fix it. but keeping in mind that it's a lexus and not a benz and I'm not sure if you fix that brand. but then again perhaps there is a brake shop in the east coast where they can charge me to troubleshoot rather than just throwing parts at it. At this rate I'll end up spending more on the car than it's worth. ..

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Whether you think you can or cannot, Either way you're right!. by Henry Ford.