Bleeding the clutch system is very much like bleeding your brake system. Bleed air out starting from the master cylinder. Otherwise you'll bleed forever and may not get a firm pedal. Did you bench bleed the master? You should do that first before proceeding to the next step.
When the slave cylinder is bolted to the tranny, it doesn't sit level. You need to unbolt the slave cylinder and clamp/hold the rod that operates the clutch fork. Hold the slave cylinder level during the bleeding process in order to get all of the air out. Now the process you used to bleed the system (from how you described) was completely wrong. You don't just open the bleeder nipple and pump away. You need to create pressure in the system to PUSH the air out, then you need to seal the nipple BEFORE lifting the pedal up to prevent that air you just pushed out from going back into the system. Follow these simple steps:
*Get your wrench around the bleeder nipple and put your tubing around the nipple then into a container to catch the fluid. Do not open bleeder nipple.
*Hold the slave cylinder level and have your partner press the pedal to the floor.
*Open the bleeder nipple to let out the pressure built up in the system.
*Close the bleeder screw.
*Have your partner lift the pedal back to the closed position.
*Repeat steps 2 through 5 until no more air comes out of the bleeding line.
Note: air may not come out the first couple of pumps.