I agree you can get it to fit. I'd also like to reiterate what was said earlier about the stem - look for the minimum insertion mark, and obey it!

In case you've not adjusted a quill stem: loosen the bolt that goes down the quill. Usually this is 6 mm but sometimes it's 5 mm or a hex. If the bolt rises as you unscrew it, give it a sharp tap with a hammer. This will release the wedge that fixes the stem in the steerer. Adjust the height, and re-tighten the bolt.