Caliper problem?
 

I was replacing brake pads and found this. Should I be concerned about this torn rubber around the piston? Could this be responsible for my soft brakes? (after multiple bleeds, no air to be found in the lines, and a relatively new (1 yr) master cylinder):

http://forums.pelicanparts.com/uploa...1158807789.jpg

That is the caliper piston dust boot.
It may not be responsible for a soft pedal but i would fix it straight away.
Over time, dirt & grit will get on to your piston and destroy the seal and maybe the piston as well.
Doesn't look like a fluid leak.
Keep looking at other wheels.

If you don't replace the dust boot, you will get rust on your piston and cylinder and may end up having to replace the caliper. Buy a rebuild kit. If you only replace the dust boot, it will take you 5 minutes and you won't have to remove the caliper.

That 'S' caliper needs to be rebuilt and cleaned! The tear seems to be fairly recent, so I don't expect any problems with the rebuild.

Get 4 rebuild kits, new flex lines, and a tube of Dow Corning 111 Silicone Grease ... the whole system needs to be done at the same time!

Ok, thanks guys. Looks like I have another winter project! May as well rebuild rather than just replace the dust boot, and I may as well do all 4.