Could it possibly be air bound, or maybe the ratio of the size piston in that master cylinder is not compatible w/ the caliper applications ?! What size or type master cylinder usually pushes Vintage Honda CB550/750 dual disc set ups & what size diameter is the standard piston used for that dual disc system from Honda ??
yodagruv, I think someone will come along w/ the specs for that on the forum here & you may have to change master cylinders. I have a good used CB750K4 master cylinder that needs a rebuild I can sell you,if that will help.