Originally Posted by
JiveTurkey
Whereever you put it, loosen the two pinch bolts on the back of the stem, install the spacers and stem how you want it, adjust the pre-load bolt at the center of the cap above the stem to where it is tight enough to remove any play in the headset but loose enough that it doesn't bind, straighten the stem so it is parallel with the front wheel, and then tighten the stem pinch bolts. It is essential that the bearing pre-load be set before the pinch bolts are tightened.
I think I understand this correctly. If I were to lift the front wheel and bring it down to the ground, there should be no up and down movement in the fork (or sound of slight movement) if the bearing pre-load is set.