Fixed it!!
Went to dealer and bought new master cylander...$200. Ouch!!!
While at dealer I discovered this issue:
All C4's pre-1988 requier new brake pedal to recieve all new master cylanders. Ykes!! :eek
The reason was the new cylander rod busing diameter is .375", and the old ones are .41".
I went under the dash and attempted to measure the pin on mine to verify the dimension. ( I was going to drill the new cylander bushing to the .41" instead of replacing the pedal). While attempting I noticed the plastic bushing/keeper in the cylander bore looked smashed, and the alighnment of the rod was way off. I re-alligned the rod on the pin and tried the pedal. The clutch felt good for two pumps and felt bad again. I checked the alignment again and it was back to the bad position. I removed the bushing from the push rod and found the keeper fingers were broken.
For a simple repair do the following:
1. Remove the bushing from the cylander rod.
2. Cut off the keeper fingers.
3. Reinstall the bushing.
4. Apply grease to pedal pin, reinstall cylander rod.
5. Install a 1/4" diameter hairpin clip in the depression on the peadal pin.
Done.
Total cost to me was .19. The hairpin clips are available at fine hardware stores everywhere!
By looking at the bad design of the keeper/bushing setup, I would recommend all pre 88 C4's check for this problem, and replace the bushing keeper with a pin clip.
Will be returning the master cylander today and getting some new shocks instead!!!