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From your lengthly description of the problem, I would probably replace the master cylinder.
The 240SX FSM outlines these bleeding steps:
1 - Fully depress the brake pedal several times.
2 - With brake pedal depressed, open the bleeder valve to let out air.
3 - Close bleeder valve.
4 - Release brake pedal.
5 - Repeat steps 1 thru 4 until clear fluid comes out.
Sequence of caliper bleeding:
Left rear caliper -> Right rear caliper -> Left front caliper -> Right front caliper
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Linear Mode
