It is certainly the master cylinder - its well documented on other forums (quattroforum.com for one!)
concensus of opinion says that its a heat soak issue having a detrimental effect on what could be (in your case certainly) very old rubber seals.......
Depending on the age of the MC that is on your car, the only way to get into the unit is to partially destroy it......however, for the cost of replacement its not really worth the hassle.
My 1986 car is now on its 5th replacement master cylinder - everytime displayed the same symptoms...binding brakes.
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