Brake Fade.. I know of this FIRST Hand..
Tom,
I had this very same problem, rather than go into a lengthy reason why it happens, I'll let you know what I did to remedy the problem.
I tried to bleed the brakes.. there was so much gunk in the lines that very little fluid would come out. I took it to a brake shop (mom and pop type) and explained my problem, and not being able to bleed the brakes??? The ole boy there asked if I could leave the car.. I said sure...
He power bled the brakes, cleaned the master cylinder really good then filled them with DOT 3 and power bled them.
He told me that the only clear looking fluid was in the master cylinder. I drive mine up to Lake Tahoe and Reno both over 8,000 feet and have had NO problems. His explaination had to do with small air bubbles, gavitation and about 10 more minutes of explaination, bottom line was the brake fluid had probably been in the lines since 1981 and was useless over 2,000 feet
I recommend NEW Brake fluid...