Bicycle Mechanics - Steering tube - maybe just a touch to long?

Alright, along with my tight steering issue, I realized after reading my Zinn book that my steering tube might be a fraction to long. I have 3 spacers and one 1/2 spacer and it appears that the top cap (to the threadless stem/steering) is just a pinch taller than the stem. The Zinn book explains that the stem should be 1/8-1/4 longer than the steering tube. Is this correct, should I take the 1/2 spacer out and fill it with a full one, this should give me that space (1/8-1/4). Am I correct, and could the top cap being tightened on the steering tube, instead of the stem give me the tight steering?

I believe the instructions that came with my threadless headset said the steerer should be recessed about 3 mm below the stem. That compares to your 1/8-1/4". Remember you tighten the headset by turning the cap bolt, thus applying pressure to the stem. If the steerer extends above the stem, there is nothing for the cap to press against; you can tighten the bolt until the cows come home or the star flanged nut pulls out and it will have no effect on the headset. So yes, stick another spacer of appropriate thickness to get about 3 mm. I can't recall if this is a new bike, fork, etc., but if you got it from your LBS take it back and let them do this.

Yeah, Im going to the lbs that is near my home. The original purchase was from a larger shop that really takes their time in helping the customers. I could be waiting 30 minutes before anyone looks my way. The one near my house said it would cost under 10 bucks - and they will show me how to adjust everything, after the stem is in the right spot.