What method did you use to bleed the brakes? Even though you have fluid coming out, you still have air in the system. I recommend pressure bleeding as apposed to vacuum bleeding. Pressure bleeding with manual pumping of the brake pedal seems to work the best. There are many threads on here about other having problems with bleeding the brakes the first time, we did too. In our situation, it was the pedal was not allowed to come all the way back up to open the valve ports. The brake switch was holding the pedal down a very tiny bit.