a6 quattro brakes

I changed the front pads on this 1996 2.8l, In the process I blew the right
rear brake hose. I replaced that bled the right rear brake and took it for
a test drive. The peddle was just ok and I think i have to bleed the rest
of the brakes. However my problem may be not putting a 15/64 drill bit in
the spring on the brake pressure regulator before bleeding as prescribed
by the service manual. Where is this regulator located on the vehicle?

I also noticed alot of noise coming from the front wheels, like something
is rubbing with every revolution. Would this be the fresh pads and a
slightly warped rotor or?