Just put the front wheel and brake together, and I've found the caliper doesn't want to retract, no matter how the caliper arm is adjusted. When I rebuilt the master cylinder, the tiny return hole was completely blocked, so I used some very very tiny drill bits (on the order of a couple thousandths) to open it up a tiny bit.
The odd thing is, when I pulled the caliper off, and held onto the pad, the return works quite well. Holding the pad in position and pressing the lever, the pad returns easily to its starting position. It's possible that the spring in the arm doesn't provide as much pressure as my hand though.
So I'm assuming it's the return hole being not big enough; the biggest bit I've put through it is 0.0225". Is this big enough?