There are no leaks anywhere. the front resoivoir on the MC was a little low, but I don't think it was quite low enough to cause any real problems, and the weather has been unusually rainy the past few daysI bleed the brakes again today. I got some air out of them, and the pedal feels better than before.
I flushed the system when I replaced the MC a few weeks ago, and didn't see anymore dirty fluid coming out.
When I bleed them today, I had some dirty fluid come out of the back brakes but not the front. Took it for a test drive, brakes work better, and the brake light never came on afterwards.
Im hoping I don't have a defective MC again, Since I don't think a little bit of air would make the brakes go completly out for a few seconds.