I have a 1981 honda cb750c that I'm having problems with the brakes on. I rebuilt the callipers and cleaned it out to the point that I can squeeze the piston in by hand when there is no fluid in. The problem isnt down there, I'm pretty sure. The issue I'm having is that when I opened up the master cyllinder, I took out the two bolts and then was unable to get the reservoir off. I am confused as to what I can do to take that off and make sure that the fluid is being pulled back, bringing out the brakes. Right now, when I put fluid in the system, the brakes lock after squeexing the lever a couple times and can only turn the wheel with all my strength. Te bearings in the wheel are good and the callipers are good, so here's the question. What can I do to get the reservoir off and then clean out the system?
Unless I'm misunderstanding you, I think you have a normal condition. Brakes don't have return springs or anything like that. The force of the Disk against the pad is what pushes the caliper out (and thus returns the fluid to the reservoir)
Have you tried rolling the bike forward and braking and then releasing? Seems like all you've done is tried to turn it by hand. With new components and pads, it may be tight for the first few times you ride it.
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If the brakes are locking up after a few uses, the bleed hole in the master cylinder is blocked. There should be a small hole after the piston assy. in the master cylinder. Make sure it is not clogged. The fluid is not able to return through this hole and it keeps pressure on the caliper pistons.
I have never tried to remove that portion of the master cylinder before. From the diagram, I guess it can come apart. Try SLIGHTLY tapping it with a dead-blow hammer to release it from the O-ring. Be very gentle and never force anything.