With the car off the pedal is hard,but with it on its very soft. I'm told it's air in the system,but I made sure to properly bleed all the air out. I did not run the MC dry. I'm going to be running through different things just trying to eliminate stuff.
Anyway,to me when the car is off,and with pedal hard,it's telling me that the MC isn't the problem. If the MC was leaking the pedal would sink just like when it's on correct? Even if it's leaking internally like around seals right? I'm just looking for someone to either confirm this,or tell me I'm a moron and correct me. Thanks in advance.

 

With the engine not running, there is no power assist.

So yes, it is normal for the pedal to be MUCH stiffer then.

Adjust your rear brakes up until you can just barely still get the drums on. Keep adjusting them up farther and re-trying until you get them as high as you can and still put the drum back on over them. You'll be amazed at how much higher your pedal is.