The brakes on my S3 are to put it mildly, crap.

New shoes/springs/drums/cylinders, bled through with all new fluid, and still they are crap...

So, I played with the adjustment on the master cylinder rod, now they are bloody good, BUT seem to stick a bit, will a bit of fine tuning cure this, or am I doing something wrong??

had same on mine, brake pedal gradually got firmer while driving until they bound, then had to let a bit of fluid out of a joint (under pressure) then it would be OK again. traced it back to master cyl rod adjustment, was too tight. should be about 1.5mm gap from memory, mine was tight up against it. cured the problem but brake performance did drop off a bit. remember it being a bit of a bitch to adjust though, awkward access.

As the "TheSmiths88" says there needs to be a bit of slack or the none return valve does not release.