I also have a problem with the front brake on my project 550. I rebuilt the front caliper, and found a decent master cylinder on ebay - the original master was too far gone to use. I've ridden the bike only a few miles, and the brake works ok, but it seems that if I leave it parked in the sun, all the play goes out of the lever, and the pads start to drag - like the fluid is expanding? If I crack the bleeder screw and let out a bit of fluid, the drag goes away. Could this be that the compensating port in the master is blocked? I also notice that the rotor isn't centered in the caliper, it's outboard a bit, with more of the inner pad visible - is this a concern?
Thanks again