Spongy pedal

Ok, I just installed the Granada swap on my 'Stang. Everything of coarse was harder than it had to be. After swapping nearly all my lines and putting in a new distibution block, the pedal sits really low and is really soft. I cant seem to properly bleed the brakes although I cant find any leaks and everything is tight. Suggestions?
 
You may need to adjust the distance of the brake shoes. When I replaced my brake system I had to re-adjust the shoes. If you have a booster make sure its rod length is set properly, there is a device that is (forgot what its called) that sets the rod within a 1/16" of an inch from the MC. If the rod is set too short it can cause the pedal to feel spongy. As Rusty said, you also need to bleed the MC as air is trapped in the valve and needs to be released before installing on the car. There are plenty of websites that offer advice on Bench Bleeding.