When I installed my blf-26c, it did the same thing. I snugged the fitting down very tight, and it quit leaking. As for the peddle, well if the system is bled correctly, and the peddle is still low, then most likely, your back brakes need to be adjusted. This should bring the peddle up off of the floor, somewhat anyway. Keep this in mind though, a proper brake bleed is critical. The MC needs to be bled before the brake system is bled, at the wheels, starting with the farthest wheel from the MC first. I bled my MC on the bench first, then I did each wheel 6 times. After the 2 rear wheels were done, I refilled the MC then did the front. After that, I started back at the rear passengers wheel and did all the wheels again another 6 times, again refilling the MC after the back bleeds. So I did each wheel 12 times, the old fashioned way. My wife was the person pumping the brake peddle for me as I worked my way around. She said her legs was sore the next day, but I have good brakes now. A pressure bleed system would work very well also, but I don't have one. Any leak you have wil let in air, and needs to be fixed. Do this before you start bleeding the system of course.