You need to bench bleed the master cylinder. This is most definetly your problem, if you didn't bench bleed it initially.
Place the MC in a vice, or hold it as level as you can in your hand. Full of fluid, use a screw driver to push the piston in all the way. Repeat this a couple times, and you should notice a steady stream of fluid coming out of the ports. It has now been bench bled. Do not let the MC run dry, otherwise you'll have to do it again.. then bleed the system as indicated above (like you've already done), and as long as you have no leaks, you should get a solid pedal.
PS the proper order is to start with the wheel furthest away from the MC and work towards it. So start with right rear, left rear, right front, left front.
Good luck..
EDIT: That is how i bled my MC and i get a nice stiff pedal with the car off.. softer pedal with the car on, but im using a 95 brake booster. All the tech articles i am reading off of a google search, are saying that you should buy a kit, or use fittings+lines submerged in a container filled with clean brake fluid. When you push the piston in, it shoots fluid out the ports.. and when you release the piston, it wants to suck fluid back in through the ports.
I've seen it done a few times without the kits (and without lines submerged in fluid), and this is how i've done it. Although i havn't yet been able to fully test the brakes out, but they seem to work good.. no mushy pedal with the car off, and pedal doesnt get to the floor with the car running..