I just pulled the headset,,,same thing ...dry....no surprise....I already drilled the hole,,,but im thinking of the grease fitting...but im not sure IF ill keep this bike or sell it and buy a decent one...I want to try it in the snow first...its heavy, almost 50 pounds and it gives a workout but I like that....ive ridden it only about 200 miles and its fun for a cheapo bike,,,I have a Giant hybrid and a Giant carbon road bike...I basically bought this for a crap weather winter bike...or to ride when trail riding with my wife on her hybrid as my speed would be slower and we could ride more together...