;)Not to worry, mine looked like that too. It took a complete tear-down and cleaning to get it back to operational, and a rebuild kit for the master cyl. You should consider new hoses anyway, as those dry rot over time. The caliper seal should be removed and the groove that it sits in should be cleaned with a plastic tool of some kind so you don't damage the groove walls. Check the piston in the caliper for pitting or chrome coming off. Small pits about the size of this (.) are not a problem, as the seal will "bridge" these and not leak. If the bleeder is stuck, a little heat from a propane torch and using a 6-point socket will generally loosen it (don't use a 12-point socket). If the piston is stuck, remove the caliper from the bike, remove the hose and hand tighten a bolt in the caliper where the hose came out of. Once the bleeder is loose, attach a grease gun to the bleeder to pump out the piston. Clean it out and inspect the parts. Someone on this board was making caliper pistons if you need new ones.