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I was really hoping to avoid spending money, but thanks for recommending master cylinder exchange at wynnum. I got the master cylinder and proportioning valve rebuilt there. It was in much worse condition than I first thought, the piston was seized. He took a look at the proportioning valve as well, and machined a new part for it, it was all very reasonably priced as well. I guess it does pay to spend the money to get it repaired right otherwise it probably would of just spread rust to the rest of the system and seize up brake pistons as well. She's looking good now

Here she is. Hope you like my KE20

Those cars are really grateful to all the TLC you can give them. So the money spended this way, is a good investment! I divided my project in many steps over the years: step 1, rebuild all the suspension and brakes, plus electrical work here and there, a new exhaust system, replace external old parts with OEM ones (turning lights, plastic trim, rear lights, bumpers) and wheels plus tires. It has been like this for about 5 years now...I really hope to start next year the step 2: bodywork! Mine is a summer car: in rainy season, there is water inside the cabin because all of the rust holes plus 40+ years old rubber :( So my goal will be disassembly it all, and restore the bodywork to his former glory! Plus, reinforcements in strategic points for adding rigidity. Step 3: Paint work....step 4 interior. And the final step: new engine! The K series engine is a great little engine, and with the right parts, can give many smiles per gallon...but I'm worried about future parts availability. So my plan is putting a modern engine (4ag series always be my Toyota favorite engine, and with Webers, the sound is just addictive), and drive it another 40 years! Keep motoring! And for the grand finale, a family pic: The red one is a KE26 station wagon with only 30k miles! It was stored for about 20 years, when the original owner died. A couple of years in legal procedures, and at last I can enjoy it! Only the wheels aren't stock, but the 3k engine and 4 speed manual box were fixed to top condition. And my plan is keep it this way, forever and ever!