And the brakes worked fine right after the booster was replaced?
Assuming the shuttle pin has NOT slipped out of center, can you unbolt the master cylinder and leave the lines attached. Make sure that the master cylinder piston is not being depressed at all when it's bolted up tight. THere should be as little clearence as possible, but clearence none the less. THe push rod should be just short of touching the master cylinder piston. Is it called a ram? It's hydraulic...
I don't think there is a spacer on the 67-68. I looked over
www.partsamerica.com. THere are a couple different Bendix styles.
Lets go back. You said you cleared the rear brake lines of all fluid. How did you do this? If you blew air in the line with the lines off at the rear wheel cylinders, where did you inject the air? If you did this right at the line off the master cyl, did you get air out the other end?
Let us know about the clearence on the pushrop. Also, if it is adjustable. It should be with a new power booster...
On the Galaxie, the adjustment was all the way down-as short as it would go, but it was still depressing the master cyl about a quarter inch. THis was enough to lose all the rear brake bias. When we spaced the master cyl out with some flat washers, we had brake fluid flying out the back lines. About that time the owner showed up with the spacer-he thought we might need it...that's probably not your problem, but I'm not sure what else to check first.
You need to get it to the point where you can get pressurized brake fluid squirting out the rear brake line fitting at the master cylinder with the brake pedal held down. THen you can move on down the line and solve the rest. Sorry, it's so much faster to do it than to write it.