Recently rebuilt my t56 and put new autozone clutch w/ lt4 pp in. (long *** story as to why its autozone). And I bought a new factory clutch hydraulic system. Slave and master, sealed and supposably pre-bleed from the factory. Installed it all worked great. Last weekend I unbolted the slave from the bellhousing to have a look inside since I thought something had broken off inside, but turned out to be a pecie of converter stuck in my ypipe. But I was just driving today and noticed my clutch ackting up. Sometimes w/ the clutch fully in I will grind gears. And the pedal feels softer. By the way after driving for about 6,000 miles not my clutch grabs at the very top which is quite annoying, this normal? Do I need to bleed system? IF so whats the best way? And how did air get in?

 

I'd try bleeding it and have someone watch the resevoir for bubbles while you are doing it.
I've done mine by removing the cap and then remove he slave cylinder and work the actuator slowly to be sure the air is out. If air is getting in, there is a breach somewhere in the hydrolic system. See if you see any fluid leaks anywhere.
If you have an adjustable Master cyl (like Mcleods), you can adjust pedal height.