When everything was cooled down did the pads/calipers fit without drag on the rotors? If they are loose when cool then it is not likely to be the calipers or brake lines. From the sounds of it I think that djpateman has hit the nail on the head. If the brake rod is not adjusted properly then it will isolate the master cylinder from the reservoir and not allow it to vent. This is a problem commonly found in the Miata, because some people do not like to have the clearance in the pedal.

I will check this out. I will search around for the adjustment specs for the brake rod. In the meantime, am I correct in thinking that I need to adjust the rod out, pedal closer to driver? I am away from the car so I am trying to conceptualize the pedal cluster.

The important thing is that the rod does not apply pressure to the master cylinder when the brake pedal is at rest. The rod is threaded and it pivots on the brake pedal lever, so if you have pressure on the rod it would need to be shortened. The brake pedal itself is pretensioned with a spring and the height should not change with the rod length adjustment.

That was it! Thanks guys The rod was adjusted all the way out preventing the master cylinder from being able to vent. I adjusted the rod and all seems to be well. I only adjusted by eye as I do not know the specs for setting adjustment.

oh my gosh, triumph!

Good job, Mike.