I lifted the seat at about 1/2" incremenets today until I felt comfortable on a 10 miles ride, and after just 1 inch difference, it started to feel a bit more natural and my back wasnt sore. Its in the shop right now getting a headset replaced (they had old NOS 600 headsets for $5, and mine was getting pitted, so why not?

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Another question I had that I figured I would ask here instead of making a new thread is, I was going to replace my stem with more of an upright one for touring, and i was at the LBS looking for quills, and the only ones they have are 25.4mm, and when I measure my handlebars, the diameter right next to the quill clamp was only 22mm. Is this some wierd size or am I measuring it in the wrong place? The bars are just some Bontragers that were on the bike when I bought it.