According to my manual you are suppose to pump the pedal after you put a hose on the slave cylinder into a bottle of fluid.

But when I press on the clutch pedal it stays on the floor. Are you suppose to manually push and pull the pedal to pump the fluid?

And when I looked at the clutch adjustment rod on the pedal there was a drip of fluid. Does this mean the clutch master cylinder is bad? How hard is it to rebuild?

 

Yes you have to pull the pedal up. Some people close off the bleeder valve to build pressure, and is a good idea if there is air in the system. But it's not necessary to close it off if you have a hose and you are just bleeding it.

If you see fluid it prolly means it on its way out. prob better to just replace it than rebuild.