How do I put this headset and fork together
I am building up my first bike and I am unsure about putting this particular headset together. The frame is a ~01 or 02 Specialized S-Works M4 with a Time fork. Along with the frame and fork I was given a ahead headset (in a bag). The headset has bearings that are contained in a sort of cage holder and there is a ntural cup in the frame to hold the bearings. I have several questions -
1. Do the bearing side or the holder side go against the frame cup.
2. There appears to be some rust discoloration on the one set of bearings. Can I just clean and regrease them and still use them? If not, where do I buy another headset?
2a. Despite the fact this is an aluminum frame, there appears to be some rust discoloration in the top frame cup. What should I do to clean this, and how can I prevent water from getting in here in the future?
3. Is this an integrated headset? It really doesn't look like any mountain bike headsets I am familiar with.
4. Its a carbon steerer fork - is there any extra precaution I should take on headset installation.
5. There are two pins that came with the headset bag and I can't figure out what the heck they are for. You can see them in the pictures. Do they go somoeplace else on the frame?
I attached some pics. The first and second one is the fork with the one set of bearings on it and the other bearings that have the rust discoloration and the top headset cap. You can also see the two mystery pins. The third one is a slightly blurry pic of the top cup with the bearings in. The final picture is how I was thinking the top would go together. Its the bearings (holders toward cup), The headset seal ring, the cone wedge, three spacers, the stem, and then the top cap with the star nut bolt.