Aha! Thanks. I have not ratched the parking brake before bleeding the rear. I need to investigate more around the rear calipers.

For the MC: I have checked for freeplay but I will check again. I doubt this is the cause because I have tried three different MC's and always checked and adjusted for correct freeplay. What exactly happends if the rod is a tiny bit too long? Will it only cause pressure to stay in the system and finally create a drag? Or can other things happen?