The fluid runs from the distribution block to the proportioning valve. You can also purchase a combo valve that should dispense with this need. If you think about it -- you cant proportion in front of the block -- so that's why it happens later. Presuming that you're using the single piston 68 or later Granada style conversion, here are some helpful instructions.
Also: don't believe that the short lengths of line are available pre-fabbed -- probably best to measure and get them done at a local parts house or brake shop. Good luck and have fun making what I think is the best upgrade as far as confidence and safety goes.
Per the instructions at
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1. Connect the brake line which formerly connected to the rear outlet of the original master cylinder to the rear port of the new master cylinder. (you may need an adapter).
2. Connect the brake line which formerly connected to the front outlet of the original master cylinder to the front port of the new master cylinder.
3. Disconnect the brake tube leading from the rear brakes at this distribution block. The distribution block is the brass block that interconnects the front and rear brakes to the master cylinder line.
4. Connect a short length of brake tube from the rear brake outlet of the distribution block to the inlet of the proportioning valve-residual pressure valve assembly.
5. Connect the outlet of the residual pressure valve to the brake line coming from the rear brakes. Space is limited, so plan ahead. Make a loop or loops in the line if necessary to make the lines fit. Do not use sealant on the flare connections.
6. The front brake lines coming from the distribution block terminated centered under the upper control arms. They may be looped 180 degrees and point rearward. The lines are anchored with L-brackets. It would be optimal to re-fabricate these lines.
7. Working one whele at a time, remove the L-bracket.
8. Carefully straighten the loop such that the end of the line points forward.
9. Slide the line straight back about 4" so the end is below and centered under the upper control arm.
10. Slip the old or new L-bracket over the terminal end of the front hard brake line.
11. Securely connect the hard line to the brake hose such that the hose is not twisted.
12. Fit the L-bracket onto the brake hose such that the breacked is correctly oreinted and secure it with a C-clip.
13. Establish the correct location for the L-bracket on the frame rail. Secure the L-bracket with the dripp point hex head screw provided.
14. Manipulate the hard line to make it tidy.
15. Check all connections.
16. Repeat steps 7-15 on the other wheel.