The headset I currently have is an Shimano Ultegra HP-6500 headset. This is the link to the headset specifications:

http://techdocs.shimano.com/media/te...9830605230.PDF

I have it assembled in the following order from ground up:

fork-->cartridge bearing ---> bottom cup ---> frame ---> top cup --->cartridge bearing ---> cone ---> spacers ---> locknut

In terms of orientation of the cartridge bearing orientation, I have the silver metal tapered side facing towards the cups.

http://www.treefortbikes.com/images/raw/BB7520.jpg

Note: Currently I only have the threaded fork in the headset and when I say it doesn't feel smooth I mean that it doesn't spin freely like my other bike (i.e. I tap the handle bars and it freely rotates to the other side of the frame).