Final update on this annoying issue.. We decided to bleed the brakes again this afternoon. Went through 2 cycles of bleeding the cylinder to almost empty. Started the bike and still same thing. In desperation decided on one more bleed cyle. When drawing the fluid from the flipping bottle saw that the brake fluid was a DOT5.1. When i bought it last week I asked for dot 4 and stupidly didnt notice that the guy had given the wrong brake fluid. I rushed down to the local service station bought Mobil DOT 4 and we redid the entire sequence .. SUCCESS is very very sweet. Everything is back to normal WHEW... Went for a quick spin and no lights came back and hill hold is working perfectly... Thanks to all for the advice especially beed bleed bleed the brakes