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c_forshaw,
It is most likely the rear seal on the piston. the best thing to do is remove the MC and replace the seals.
Tilton will have a rebuild kit.
Looking at your MC setup, it seems that changing the MC will be a bit of a pain.
Therefore, If it were mine, I would just by a new MC as they are pretty cheap. This way, you will know for sure that you have fixed the problem and you will not have take apart again if the rebuild does not work.
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