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brake snot

I'm wondering if any of you netters could help me with the following

I have a 1988 5000 quattro wagon with 122,000 miles. I have the
following problems:

- When checking the brake fluid resevoir, there is this stuff in the 
fluid. I call it 'brake snot' simply because that is what it looks like.
I think it is some sort of seal breaking down somewhere.

- The triangular brake idiot light is acting up. Whenever I go into
reverse, the light flashes and beeps 3 times. When I go forward, after
some use, it will do the same.

- The ABS system shuts itself off at its own whim. To re-activate it
I have to hit the switch twice.

Any help will be appreciated

Jason Benderly