2004 2.5 tdi VW lt 28 brake issues

Brilliant thank you, I'll take the dash apart soon.

Yup pedal goes solid with the engine off, and the pedal creeps down with the engine started. Hopefully when vcds gets here I can properly purge the abs pump. I'm wondering if the new master cylinder could be knackered.

Sorry mate I meant to reply to last message, vcds won't talk to the abs on these. VCDS only talks to the immobiliser and engine. Think it's the fact that a lot of it is mercedes build. I took my van into vw commercial to code new dash clocks with rev counter but they couldn't do it, they started getting old dusty computers out of the stores cupboard to try them but had no joy. It went from a half hour job to three hours to 'leave it with for a couple of days.....and we'll bill you accordingly @ £100 per hour' errrrrrm no thanks chaps!

The abs system won't work without the wheel speed sensors fitted but abs shouldn't affect the normal operation of the brakes as a safety concern. Did you retrieve any fault codes?
Pretty sure you should have the same lights on ignition as in the picture I posted, some bulb slots will be empty as they are for things like 4x4, power take off, etc.
The front wheel bearings are adjustable so it may just be a case of tightening them on by the screw and clamp nut. Probably best to remove them, clean and inspect them, regrease and refit them if ok. To do them to spec you'd need a dial guage indicator and mount.
Also meant to say to bleed the clutch slave cylinder on the gearbox just as a matter of service to the fluid system, you'll know the whole system is flushed and fluid renewed. The one other tech spec on bleeding the brakes was to operate the load adjustment lever when bleeding (which I never done) but brakes are fine.    

VCDS will be invaluable once you've sorted the brakes.
The only thing regarding the brake regulator I would worry about now is that there is no tension on the control rod. The regulator when applied (heavy load) reduces braking pressure to avoid overbraking of the rear wheels. Tech states to ensure the braking system is working fine before adjusting the regulator.
I'd concentrate on sorting the wheel bearings as it could be them affecting the geometry of the brakes and if they are causing clunking when applying the brakes as you say it sounds like they are well out. Play in the wheel bearing should be 0.02 - 0.04mm (hence the dial guage), so if you can feel the play by hand it's out of spec. This could account for the better braking in reverse. I've seen many mechanics just tighten the wheel bearing with pliers hand tight and that's their spec! You could try this for now to see if it is loose and makes any difference in braking. Wheel off - bearing cap off - loosen allen head lock screw - tighten clamp nut - hold nut in place - tighten lock screw - refit bearing cap.

Yes mate, I took a very knackered and welded shut one off the back, it's got a new one now. 

So the brakes are working!!!! The wheel bearing wasn't put together properly, huge socket and a hammer and a clunk. Put it back together again and its working better!! 

Haha yeah I went all out.