got a used cinelli gazzetta with a FSA Orbit Headset. i believe it is a Orbit No.1 DL threadless headset (FSA Orbit DL Threadless - FSA). was trying out a different bar and stem when i noticed a small amount of rust on the steer tube. removed everything, hoping for an easy clean, only to find a rusted and bent bottom bearing with more rust on the bottom of the steer tube where it meets the forks (the crown race?).

its late and its more than i want deal with at the moment, so i put everything back together to try out the stem and bars only to notice that the upper cup isnt sitting properly. there is gap and i cant figure out why. i'll be most likely replacing the headset with a sealed one, but in the mean time, its kinda warm out and wanted to give the new stem and bars a try before the snow comes.



i tried flipping the bearings and seals to see if anything changes and of course it doesnt.
why isnt sitting properly?
any recommendations for a sealed headset? this is a road bike which i also plan on riding at the new velodrome near toronto

any help for a noob like me would be awesome, thanks