Hard pedal power brake troubleshooting

[twouvakind]

I am starting the process of cyphering my hard pedal on my 72 cheyenne(factory disc up front, drum rear). I started by checking the booster by depressing the pedal with engine off a 1/2 dozen times------started it up with some pressure on the pedal and it dropped a bit----passed(I think)
Next I looked at the check valve, tubing and grommet----all in good repair
Connection from manifold in good repair as well
Off with the master cylinder cover-----fluid good with some "drooping" of the gasket into the chambers(as intended). I was really surprised by the fluid coming out of the vents in the cove(nearly ruining my pants)
My question is: Should there be any fluid on top of the cover gasket? This area is vented(atmosphere)what business does fluid have in there?

P.S. by hard pedal I mean I have some travel with adequate(not great)braking effort but the pedal stops like it hits a brick wall.....no more flex/travel----s o l i d.

Any and all help greatly appreciated.