first off, it sounds like you guys probably bled the brakes wrong.
make sure that when the person takes their foot OFF the pedal, the valves ae closed, otherwise the system will suck air back in, and the brake fluid will froth and bubble with air meaning no brake pressure at all almost. the first time that I bled my brakes, I made this mistake and didn't realized it until I had put all my wheels back on
and the emergency brake light means not enough brake fluid- that's how toyota designed the warning light