Bob-

Are you suggesting that I remove this star nut AND the sleeve that's already installed? If so, how can I go about doing this?

I'll gladly pick up a new compression plug. My main concern is getting this one out.

I definitely want to cut the steerer down. The headset I bought is the Cane Creek IS42 with the short 9mm top cap. I plan on putting a 5mm spacer above that and a 5mm spacer above the stem. I do not want any more steerer tube than necessary.