This thread is old, and I'm new, but I do know a little bit about this problem. So I'll add information since this is an incredibly common problem with Ford Master Cylinders. More so recently than anything.
What happens is people neglect the brake fluid and leave it in there way past its regular life cycle. I recommend having your brake fluid changed out every 25,000-30,000 miles. It can notably go much longer than that, and in some cases people still have their orginal brake fluid from the day it was driven off the lot (yikes!). However, because these master cylinders are so touchy, I would say get it changed out every 30K atleast.
When changing this out, go to a local auto place that does it properly. They have a pump they put on top of the master cylinder that will remove the old fluid and put in new fluid. There is another way to do this with you and your friend in the comfort of your own garage which is known as the "brake pedal" method which involves you using release valves on the brake calipers and then "pumping" the new fluid in by pressing the brake pedal many times. I do not recommend this due the stress it puts on the master cylinder seals (read next paragraph).
What is the problem with the master cylinder specifically? I saw someone ask this question. Well there are two seals in the master cylinder. One of which sends brake fluid to the front brakes, another of which sends brake fluid to the rear brakes. Everytime you press your brake pedal it is attached to a rod in your brake booster. That rod goes into your master cylinder. The forward movement of this rod moves your seals in the master cylinder allowing the system to move more brake fluid to your brakes, hence applying the brakes and causing the car to stop. These seals typically only have about 1/2 an inch of movement in them. However, as previously stated, the brake pedal has more travel and a "crunchy" feel to it. This is because these seals have begun to go bad due to bad brake fluid. The brake fluid acts as a lubricant for these seals as well, when the fluid breaks down it causes irregular wear on the seals. Over time, they go bad.
It should be noted that when you use the "brake pedal" method to re-bleed your brake lines, it causes excess travel on the seals inside the master cylinder. While on a healthy master cylinder this will not cause long term damage, on a unhealthy master cylinder (ours) it most certainly will. Have the new brake fluid put into the system via master cylinder pump.
The remedies to our "crunchy" brake pedal problem: Well, mine only acted up once in a blue moon. Typically after I had run errands all day and I was in a parking lot or slow city driving. However, once on the highway, the brake pedal would act normal when getting off on an offramp. However, once I returned to slow stop and go driving or a parking lot, it would act up. Once it sat overnight, it would be back to normal until my next long day of errands. Well I started with the cheap fix -- I went to sears auto (yikes! I know) and told them I wanted a brake fluid flushed and replaced with new fluid. They did it, successfully I might add, and to this day I have not had the "crunchy" brake pedal problem. Some of you have this problem much more than "once in a blue moon." In which case, a simple fluid switch may not solve the problem for you. You may be required to switch out the master cylinder. With this in mind, don't worry about the brake booster, there is nothing wrong with it. The sound and feel of the brake pedal has to do with your seals going bad and extending further beyond the point of travel than they should.
Hopefully this post will serve as a good source of information since these cars are getting older and this problem is probably becoming more rampant.
Thank you,
CJ