Shifty wrote:....... (unless the entire line is bulging a tiny amount?). ......
Bang on the head - the whole line flexes, and thats most of the problem. You may have problems with the actual calipers as well (piston seizing slightly in the caliper will give the symptoms you have described - only way to fix this is replace the brake pistons, which is costly.)
Braided lines will help, so will new fluid and new pads. If the m/cyl is stuffed (piston may have scored the bore, seals could be worn etc), then you should get a kit put through it......or ditch it and replace with a m/cyl of a ZX6 or similiar. This will definitely fix your brakes.