OK - I have fixed it - for anyone reading this, the trick is to pump the pedal up and down like crazy, even if it seems nothing is happening (putting it down / lifting it up against the spring.)
Do this like mad until you get a small amount of pressure. (did I say pressure? - Yipee! )
From then, start to slow on the lifting of the pedal and you will then find you are starting to draw from the reservoir (more yipee!)
More pumping may be required, then slow down on the upstroke and it should continue to draw fluid from the top up reservoir.
After a while you should be able to use your foot on the pedal to get more and more clutch.
I have left it overnight before bleeding out any air if it still feels spongy.
The reason for all this is that i think initially the fluid is bypassing the rubbers in the master cylinder until you can get some pressure up in the cylinder.
This is my experience and even the main dealer tells me they are a problem... good luck and I hope this helps some one!
Don't go buying a new kit for the master cylinder like I did. Those guys in shops don't have any idea half the time! They just want to sell you stuff!
Kiwi - Tauranga NZ, February 2009