OK, so I bled the clutch and here's what happened:
1). I was able to depress clutch to floor while bleed valve was open.
2). We cleared out all dirty clutch fluid and kept it topped off.
3). When I was able to depress the clutch, I was also able to shift gears as you normally would be able to.
4). When we close the valve each depression of the clutch would allow less downward motion. So it might be 3/4 first pump, then half and then stay at 1/4, not allowing you to depress any futher (kind of locking up).
5). As soon as we closed the valve and allowed the clutch pedal back up, we could never depress to the floor and shift gears again until we opened the bleed valve again.
Does this suggest a leak? Or if not that, then what?