Wow...you are a lucky guy. You don't have a damaged headset what you have is an "indexed headset"...lucky you...the indent is called brinnelling...

You can "pit" a brand new headset on the first ride if you hit something hard enough to indent the race.
You can do several things to remedy the problem. Replace the headset...possibly replace the damaged race only, you can often get just one part from Campy...turn the damaged race 90 degrees to the left or the right if possible, this will put the damage in an area you won't hit when turning.

It is easier to cause an indent when the headset is loose but generally you have to hit something with a decent amount of force.

I'm a huge fan of the Chris King headset. Mine is also a 1" and has been on the bike since I built it in '99 and is in perfect condition with 3000 plus miles per year on it.