I thought that my fluid level was low so I bought a bottle. Took the cover off and discovered that it's to the rim. Since it's above the FULL line, what harm is this causing? Is this the possible cause of my brakes dragging (not allowing the piston to retract)?

 

I would think that harm would be too much hydrolic pressure, possibly causing premature wear .

 

no trouble really. Actually I think the brakes dragging would cause less fluid to be in the resivour. You pump a little bit out and see what happens.

 

anything is can happen... I don't think that your Dragging would be caused by over filling the resvoir.
calipers that "grab" or "Bind" or "Dragg" usually happens from overheating or the piston seals leaking.

are your rotors/ free floating disks warped, dirty, bent? is this happening in the front or rear, or both?

 

Took some out, no change. In fact level looks the same. How do I level this thing properly?

I think I may need to bleed. Today on a spirited ride (WOOHOO the rain broke long enough to ride) I did a pretty hard braking manuever (that means coming to a stop) and it felt like the brakes faded a little. Think I need to check it out. I meant to spray it down w. Brake cleaner B4 my ride, but forgot.