D2's have notoriously bad braking, they all suffer from the disco two step syndrome where you have to hit the brake twice to get any real stopping power.
what has helped a lot of people is one replace the 15-year old rubber hose with new stainless ones and completely flushing the old fluid out of the system, mine was Black after 10-years.
The fluid in the calipers was not that bad, but after a few minutes the stuff from the lines was terrible.

 

I've heard they don't stop on a dime but then again I haven't driven mine yet. Might want to think about putting quality pads on there and resurfacing the rotors etc. I have a 95, and I was looking for the manual last night and the ABS light stays on until you reach 5 mph then should go off then. So you're saying you don't have a light at all, so yes it could be a burned-out bulb. As far as ABS is concerned, you won't feel any pulsating pedal until you're with wheels begin to slip or lose traction. You just may not achieved loss of traction, not sure.

 

Again, thanks to everyone that replied! We verified that the brake pads and rotors are in good condition. We also determined that the caliper pistons are working properly. We added a little brake fluid, which looked OK, and verified that there were no obvious leaks. Additionally, we determined that the vacuum assisted brake bellows are in fact working (we disconnected the vacuum hose from the brake bellows unit, plugged the hose, and tried to apply the brakes to the vehicle at slow speed, and there was a noticeable difference - no brakes - as opposed to when it is connected). Any other ideas/thoughts/suggestions? As always, your guidance and recommendations are very much appreciated! Thanks again!

 

Someone else mentioned the rubber lines. They could be swelling up when you apply pressure so you may want to consider new ones that don't flex/swell up. I'll mention it again and add that although the pads may look good, they may be cheap pads to begin with. Invest in a set of good pads (Hawk, etc), replace the rubber lines, flush the old fluid with new and make sure you get a good bleed. Aside from that, that's about as good as they will get. I'm not sure of what it would be but there's probably a budget brake mod/upgrade that someone's gone through. You may just want to go that route if the brakes aren't living up to your expectations.