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E34 Brake problems



I have a 1995 525i with 35K miles and stock brake pads on it.  The brake
pedal went spongy, I replaced all of the brake fluid with Castrol LMA.  The
pedal was still spongy and I took it in to the dealer for Inspection II.
The dealer said the pads were fine, bled the system and the brakes worked OK
(after paying the dealers tithe for Inspection II).

2-3 weeks later the pedal has gone spongy again.  The dealer is 4 hours away
so I would appreciate any suggestions on potential problem areas before I
face the dealer.  It is a logistical challenge to get everything setup and
get the car worked on when you have to do it by remote control.