I have a 2000 Fuji Team road bike (bought used) with a Cane Creek SL5 headset. The headset has a little wobble to it, but it can't be tightened any more or the steering feels like it is binding. The bearings are installed correctly, and the parts look like they are in reasonable shape. I took the headset apart, cleaned and regreased the bearings, but I noticed that there is no compression ring. This is my first (and only) threadless headset, I'm not sure that one is needed, but I bought one to see if it would eliminate the wobble - it didn't. The top race seems like it is rocking, I'm including a picture showing it being tilted on the bike. The top race might be overworn, the metal on the inside of the race seems thin (it's sharp). Anyway, I'm going to replace the headset, but I have a few questions:

1) Is there anything else I need to worry about relating to the headset, head tube, steerer or star nut (can I use the one currently in the steerer)?

2) I'm budgeting $60 for a new headset, is that sufficient? Any recommendations? I'm only moderately concerned about weight, mostly smoothness and durability.

3) Is stack height critical, or can I make up a difference by changing spacers?

Thanks!

Roger