I just bought a '93 240 (156K miles), and the brake pedal is very mushy. I have the pedal most of the way down before it starts braking, but at that point, it does seem to brake fine. If I sit and pump the brakes, it does seem to firm up the tiniest bit, but is still far from normal. When I press the brakes hard I hear a slight squeeking noise, as well as an air noise (much louder than any noise in my other volvos).

Neither the ABS or brake failure lights are on, I'll double check that they arent simply burnt out. Does the system need to be bled? A new master cylinder? Something else? Thanks for any advice or insight you can offer!