use dot 3 brake fluid and yes you want to bleed your clutch line. and make usre you bleed it right.
this is the procedure
1. push clutch pedal down
2. open bleeder
3. allow lfuid or air to expell and close bleeder
4. lift pedal if there is no pressure
5. repeat until pedal feel right

and make sure the resovoir doesnt get empty or you have to start all over. any air in the line can cause the pedal get soft quick