Brake pedal issue-----Solved!

My Valiant is a '64 with a '66 front clip, 66 /6motor with 4spd OD. It has the K-H 4 pot discs with a manual dual reservior MC, both res are the same size. Rear axle has all new braking parts, less than 500 miles. Fluid was changed when the rear parts were installed.
Brakes were working fine, good pedal, easy to lock up all 4 wheels.
Just changed upper & lower control arm bushings. and reassembled everything.
I hung the calipers from a wire in the wheel well rather than undoing the hoses.
Now the brake pedal traveled about 3-4 inches with poor braking, but will pump up and exhibit good braking, firm pedal lock up.
I've always experienced this as the rear brakes needing adjustment.
My normal method is to tighten the adjustor until I can't turn the wheel, then back it off 4 clicks.
Adjusting the rears required ~ 8 clicks to tighten the wheel, then I backed the off 4 clicks. Both sides were equal.
I bled/flushed the brakes just because the car was jacked up and I was in there. No air bubbles, pedal was not soft.
Pedal is better, travels about 2-3 inches but still need a pump to lock up the wheels.
It's not a soft mushy feel, and it's firm when everything locks up.
It holds at that point, doesn't travel further like the MC is by passing.
Any ideas?