I pulled up beside a buddy from work with a 05 mustang gt at a red light and was going to race him. But when i let out of the clutch to go it made a little grinding noise and did a little slipping. When i tried to shift to second the pedal stuck to the floor and didn't go into gear. I let it coast for a bit, picked the pedal up off the floor and drove on to work. After a few hours i went back out there to see the damge but the clutch had some feel back in it, not the same, but a lot better. After work i got back in it and drove home.

The fluid in the slave cylinder was low. Do you think it was just a air bubble in the lines or the clutch is on its last leg?

 

You have a hydraulic issue. Look for a leak the fluid had to have gone somewhere. Look at the inside where the rod connects to the pedal.It is in that area to the backside of the master & see if it seaping from the boot at the firewall.
That is where I'd start witht the problems.