Try putting the original master back in... or did you return it for a core? You should not have to loose money on it, take the darn thing back and demand another one. You wouldn't be the first to get a bad rebuilt part. Or if the junkyard one works, then just ask for your money back. I got my money back for the bad one I got.
One other thought, I doubt your bleeding technique is the problem, since you have fluid squirting out of the master, but I just want to make sure you are doing it right.
What procedure are you using for bleeding it? It seems to me like you are just opening up the bleeder and pressing the pedal a few times and then closing it. (since you talk about fluid squirting out) If that's what you're doing then you're not getting all the air out because it is being sucked back in when you let off the pedal. You need one of those one man brake bleeder things, which is a hose that goes into a jar, so that if the fluid tries to flow back, it gets more fluid from the jar and not air. If you can get another person, (which is how I do it) it will be even better. The other person need not be mechanically inclined or anything.
Have the other person sit in the driver's seat. You go to the farthest away brake and put a hose on it that goes into a jar with some fluid in it.
Now yell to the person in the driver's seat and tell them to press the brakes. When the pedal is like 3/4 of the way down, they should know to yell to you.
Then you open the bleeder screw and leave it open until they yell that they are at the floor, then you close it. Then once it's closed, you yell back and they let up on the pedal and the whole process repeats, and once the air is gone you move to the next closer one.
-Ted
