Originally Posted by St33lWh33ls

Pieces in order as above, assuming headset races “4” and “5”are the same size shouldn’t matter whether they are placed in the top or bottom of the headtube. Sometimes the bottom race is a bit larger (meaning thicker), test fit “4” and “5”. If you were to fill the bearing races completely with bearings in this case it looks like 1/8” you would remove about three to have a smooth working headset. Turn the frame upside down like a previous poster suggested and place the race with some grease on the bearing surface and then place the appropriate amount of bearings and then place some grease on the fork crown race surface. Slide the fork down into the headtube gently into place, at this point you can turn the fork back and forth ever so slightly to see if it turns smoothly. If everything is to your satisfaction at this point find a bungee cord, drape it through the center of the forks and wrap it up and around the toptube and attach it to itself to prevent the fork from falling out when you turn the frame right side up in the next step. Once you have the frame right side up slide your top race over the forktube and into place in the headtube, grease, fill with the appropriate amount of bearings. Grease the bearing surface of number “3” and screw it into place, once it is screwed down enough to keep everything in place you can make a quick initial adjustment by removing the bungee and rotating the fork and tightening or loosening number “3” . The fork should turn freely, but it should not rock in the headset. Keyed spacer next then the locknut…done. Once you have you have a wheel, handlebar and brakes on the bike you can make your final adjustment, and I use the term final loosely, by holding the front brake on and rocking the bike forward and backward to see if there is any play, adjust accordingly.