changed rear brake pads today.. when finished brake pedal very soft.. they work but pedal goes down as if im steping on a sponge..seems like something is not rite... HELP

 

Have you done brakes before? They will be a bit softer until the new pads seat in (did you read the break-in instructions?).

Other than that you may have assembled something incorrectly. I would pull the wheels off; have a helper press down the brake pedal while you observe the the calipers (one at a time) and see if they deflect more than just a little. Did you clean the pins that the pads slide on?

 

I've installed pads and drilled rotors.
The pedal is now firmer than what I started with.
I also bleed the brakes out after installing metal brake lines.
When you had the calipers off there mounts, you did support them with a bungy
or something?
The Volvo brake lines are not the best, "in my opinion" and if the
calipers where left hanging this could have allowed air into the system.
I would inspect the rubber lines where they connect to their metal
cuplings, the slightest sign of moisture I would change the lines.
No moisture, I would still bleed the system out.
Start with the caliper furthest from the master cyl and work your way towards it.
I have found a Mite-Vac works fine if you take each bleed nipple out and wrap the threads with tephlon tape, "Careful not to cover the bleed hole". This prevents air from entering past the threads.
Watch the fluid level.

 

WTF??!!

 

If the calipers were removed and left to hang, the seal between the rubber part of the brake line and the steel coupler could have broken, this would allow air into the brake system and be the cause of the soft brake pedal.
Therefore check the lines.
Another thing that comes to mind, has the brake fluid "ever" been completly flushed.

 

Like gdog said, there is definitely a seating period required for new pads. I found this to be most noticeable when changing from the OEM stock pads to harder pads. The softer pads seem to grab the rotors quicker, but living out here in the west I do a lot of mountain driving and tend to ride the brakes more than "flatlanders", so the harder pads are preferred.