Does the lever feel like it has pressure on it before it touches the grip? If it does start getting pressure just before it bottoms outs, you probably still have air in the line somewhere...usually up by the banjo nut on the master cyclinder thats usually where a air bubble likes to hang out..it can be a real bitch to get all the air out sometimes....had a simaliar problem not to long ago...good luck..your handle should start engaging about mid way in the throw..

If that is the case, I've had good results covering everything with rags and loosening the banjo bolts to get the air out. JUST BE SURE YOU DON'T GET BRAKE FLUID ON YOUR PAINT!