I had problems bleeding Hayes Nines, which are very similar, I found that you have to follow the instructions word for word.
To make things easier use a 500ml coke type bottle with a small hole poked in the top, through which you pass the plastic tube to catch the brake fluid. This can be attached to the bars using an old spoke/gardening wire hooked around the the neck. This helps keep things clean.
It helps if the bike is held level in a stand with the handlebars stable, I use an old coat hanger (wire type) to hold the bars straight.
Currently it sounds like you've still got air in the master cylinder which would give the problem you described.