Originally Posted by
francophile
The crown race shown looks to be pitted to hell. You shouldn't be using captive bearings on the lower race, use loose bearings. If you overtighten or install the captive bearings upside-down, things will feel notchy or rough, the goal is to tighten enough so there's no play after fully tightening down the top nut, but it also doesn't feel indexed (notchy).
Adjust the headset after installing the stem. Tightening the stem can distort the steerer enough to make a difference.