Ok, just to have things documented...I got the new piston today. Phenolic for $44 from Godfrey, a user on this forum. It's so light and a honeymoon fit.
Installed new seal and piston with assembly lube and pad with high vacuum grease. Going to bleed with DOT4 tomorrow as the new Nissin MC I have calls for it. I'll have to flush out the DOT3 that's currently in the lines. After that, brakes will be all finished with new parts and my pad should (will?) retract as it should.
Any problem with doing the caliper rebuild without filling it with brake fluid? I think it should be fine but curious if I'll run into any bleeding problems.
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1978 Honda CB550K