So I am working on a Schwinn Suburban that a friend of mine dropped off, wants to get it fixed up for his father. No big deal.

When I was disassembling the bike, I noticed that the fork would rotate smoothly for about 1/4 and bind quite hard, same symptoms going both ways. Once the fork came out, the cups for the headset just simply fell out of the frame (where they are usually pressed in quite well).

What can I do about this?