ok, first i'd want to make sure that i was using the correct spring rate. Just because it doesn't bottom doesn't mean it's correct, and a good idea may be to use a little less sag than recommended, this may help a little bit if you do it right, and still give you a fairly compliant shock.
What you can do is increase the oil weight, stock is 7.5, you should try 10wt. It helps, but it's also not a huge effect. The reason your fork does this is because it is a marzocchi (newer 05 shocks are going to have different technology and features that may get around this). Marzocchis usually have very little compression damping, because they shoot for the best suspension performance. This means that when you apply the brakes, the weight shift easily lets the fork move through it's travel. When you have a fork that doesn't operate like this, it is sacrificing the suspension feel and action to do so. A little stiction, low speed compression, or a "platform" are the kinds of things that will keep forks from doing this, but in each of those cases, you will not end up with a fork that is as "plush" or "acive" as the marzocchi is. So in the end, it is a tradeoff.
Fox forks with the compression adjustment and a couple others do have adjustments that will allow you to counteract the brake dive, and the new marzocchis will have some sort of compression adjustment as well, but in the end you may find yourself not using the adjustment (just like many people have in the past) because you may find the tradeoff (decreased suspension performance) is not worth it.
It's also not an especially dangerous situation, although it may decrease your travel significantly (the most i've ever seen with a marz is around half from heavy braking), you simply have to weight your body correectly to stop, as you would in any situation. Do not lock the brakes (obviously this doesn't help you stop). Get your weight back, and use the front brake as much as you can without locking it.
What you can do is increase the oil weight, stock is 7.5, you should try 10wt. It helps, but it's also not a huge effect. The reason your fork does this is because it is a marzocchi (newer 05 shocks are going to have different technology and features that may get around this). Marzocchis usually have very little compression damping, because they shoot for the best suspension performance. This means that when you apply the brakes, the weight shift easily lets the fork move through it's travel. When you have a fork that doesn't operate like this, it is sacrificing the suspension feel and action to do so. A little stiction, low speed compression, or a "platform" are the kinds of things that will keep forks from doing this, but in each of those cases, you will not end up with a fork that is as "plush" or "acive" as the marzocchi is. So in the end, it is a tradeoff.
Fox forks with the compression adjustment and a couple others do have adjustments that will allow you to counteract the brake dive, and the new marzocchis will have some sort of compression adjustment as well, but in the end you may find yourself not using the adjustment (just like many people have in the past) because you may find the tradeoff (decreased suspension performance) is not worth it.
It's also not an especially dangerous situation, although it may decrease your travel significantly (the most i've ever seen with a marz is around half from heavy braking), you simply have to weight your body correectly to stop, as you would in any situation. Do not lock the brakes (obviously this doesn't help you stop). Get your weight back, and use the front brake as much as you can without locking it.