Its possible you bought the wrong headset. Its also possible that the crown is correct for the steerer tube but needs to be pressed on...back in my shop days we had a pipe like tool that slipped over the steerer tube to help seat the crown in place. My recommendation is to take your fork, frame, and headset to a decent bike shop and ask for advice. If you need a different headset they should be able to tell you and probably will have one available for purchase (or can order you the right one). If you are confident you can do the work then take the advice (and parts) you get back home and geterdone.
Your bearings don't look to be sealed (as in cartridge) type bearings. The red rings just look like normal gasket/labyrinth type seals to prevent dirt and water contamination.
Btw, Scatante is Performance Bike Shop's (internet & mail order) house brand, you could call their 800 number and speak with their tech department to get the specs on your frame and headset.
-j