The piston rod seal in the master cylinder is shot. Rebuild or replace.

Make sure you wash the brake fluid off the inner fender completely, or it will gradually eat the paint off, starting some hard to repair rust. Also check to make sure you don't have a booster half full of brake fluid!

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!