I wouldn't think reaming out the steerer tube is a very good option. I had the same problem on an old Nishiki I acquired. I started in grinding down a standard 1" stem and gave up when I realized how considerably much needed to be taken off. I eventually just picked up on ebay a nice older fork with a standard sized steerer tube. The replacement fork turned out to be a nicer one anyway and fit just fine inside the headtube.