Keith,
I had this same problem one evening while bleeding my brakes! I pumped and pumped and pumped and added fluid...more fluid...and more fluid and could never get the brakes "tight".

Finally, I noticed the brake caliper nipple was very loose when I would open and close it, but I did not see any fluid leaking out as I was applying pressure. Finally I decided to add thread tape to the threads and damned if it didn't work!!!

Apparently, it was "sucking in air" as I released the brake pedal, thus, never fully pressurizing the fluid.