You're spot on as far as the fork, and you've got 2 choices for the headset issue. Either get the Cane Creek XC Short for the Headsok, (available for $80 on ebay) or there's also a guy on ebay selling the adapters that let you keep your current headset, and use a 1-1/8" fork. It's about the same price, but you won't need to mess with removal/installation. Don't bother with the Problem Solvers, as they may be cheap, but then you need a new headset, and the stack height ends up being too much. I'm waiting for the Postie to bring my Cane Creek, so I'll let you know how that goes.