if it didnt have enough free play the pedal would pump up till it was rock hard and stay that way, as it wouldnt be releasing the pressure

have you bled the master cylinder first?
sometimes you need to bleed it first to make sure its actually pumping fluid

or just pull the brake lines off the master cylinder and then pump the brakes, obviously have something to catch the fluid, that way you will be able to figure out if the master cylinder is the problem