Pulled the caliper AGAIN. Even though I may be doing it in a few days when the Honda seal gets here....
The groove was clean, but I cleaned it again with a pick and a wire brush. It didn't look like there was much, if any, fluid around the pad or bottom of the caliper. I wonder if what I saw was just leftover from pulling and bleeding the brake yesterday? Maybe the wind blew it around?
Anyway, the piston was backwards. The original piston was not. I remember think to myself, "Self, I think you're putting the new piston in backwards". And I did.
That's all fixed, bled again, firm lever and working properly. I'll keep an eye out for leaks. I'm really wanting to debut this bike at a local Euro/Japanese/Cafe bike night tomorrow.