Nice bike. I agree your friend needs something nice to drink to warm his heart and lift his spirits like his bike did for you.
How did you lube the Headset? Unless you took the fork off the frame you didn't do it correctly. If you unbable and/or lack the tools, I would strongly recomend you take this to a shop for a complete professional overhaul and cleaning.
Headset, bottombracket, hubs need overhauled. the steerer and seat tubes could benifit from having a hone run through them and regreased. clean and lightly lube the cable (or replace with new stainless ones).
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“One morning you wake up, the girl is gone, the bikes are gone, all that's left behind is a pair of old tires and a tube of tubular glue, all squeezed out"
Sugar "Kane" Kowalczyk