Ptolemy's theorem states that for cyclic quadrilateral $WXYZ$, $WX\cdot YZ + XY\cdot WZ = WY\cdot XZ$.
We may assume that $P$ is between $B$ and $C$. Let $PA = a$, $PB = b$, $PC = c$, $PD = d$, and $AB = s$. We have $a^2 + c^2 = AC^2 = 2s^2$, because $AC$ is a diameter of the circle. Similarly, $b^2 + d^2 = 2s^2$. Therefore, $(a+c)^2 = a^2 + c^2 + 2ac = 2s^2 + 2(56) = 2s^2 + 112$. Similarly, $(b+d)^2 = 2s^2 + 180$.
By Ptolemy's Theorem on $PCDA$, $as + cs = ds\sqrt{2}$, and therefore $a + c = d\sqrt{2}$. By Ptolemy's on $PBAD$, $bs + ds = as\sqrt{2}$, and therefore $b + d = a\sqrt{2}$. By squaring both equations, we obtain
\begin{alignat*}{8} 2d^2 &= (a+c)^2 &&= 2s^2 + 112, \\ 2a^2 &= (b+d)^2 &&= 2s^2 + 180. \end{alignat*}
Thus, $a^2 = s^2 + 90$, and $d^2 = s^2 + 56$. Plugging these values into $a^2 + c^2 = b^2 + d^2 = 2s^2$, we obtain $c^2 = s^2 - 90$, and $b^2 = s^2 - 56$. Now, we can solve using $a$ and $c$ (though using $b$ and $d$ yields the same solution for $s$).
\begin{align*} ac = (\sqrt{s^2 - 90})(\sqrt{s^2 + 90}) &= 56 \\ (s^2 + 90)(s^2 - 90) &= 56^2 \\ s^4 &= 90^2 + 56^2 = 106^2 \\ s^2 &= \boxed{106}. \end{align*}
~mathboy100