Yes, the headtube should have been faced. If it has not, have it done. I use all steel Tanges, model governed by stack height needed. Levins are nice but even the cheap $8 OEM headsets are good except there are no seals. (Quite usable in good weather or with fenders and marine grease.)
I get ~8000 miles per Tange HS. Another 1-2000 after upping the balls one size. For $30 and one adjustment/year (tighten 1/8th turn), I call it good.
Edit: I wrote 1/8th turn before reading the last post. 1/16th might be closer. I DO NOT get my HSs too tight.
Ben