I brought another Raleigh Supercourse home from the bike exchange this weekend to clean up for sale and am having a problem with the head set bearings.

I removed the fork, cleaned the bearing races, replaced the loose bearings ( leaving one out both top and bottom) and re assembled everything.

When I adjusted the top nut to take out the play in the bearings I noticed that when the fork was rotated one way it would bind slightly. Turning it the other way there was no binding ( I was not turning it 360 deg as there is a cable stop on the fork which hits the frame if you turn it too much).

I also noted that when the front wheel was put into the fork it didn't align perfectly with the frame , being about 1/8" off center to the right looking from front to back.

I pulled on the fork blades a little and got the wheel to center in the fork and align properly but the dragging in the bearings worries me.

I did a close inspection of the frame and couldn't see any telltale signs of an impact. I also looked at the bearing race on the fork and it looks like it is seated properly.

What am I missing?

I think the bike will be rideable as is as a donation bike but I was hoping to put it in our big sale next week along side the other Super Course I just fixed up and and I can't let it go the way it is.