I'm stripping a vintage Pinarello frame and swapping the components to a vintage Paco Columbus TSX frame, but I have to replace the Campagnolo headset because the bearing races are pitted.

The Paco has a stack height of 50mm; that is, the steering tube is 160mm, and the head tube is 110mm. And there is only 1 inch of thread on the steering tube.

So 50mm is the absolute tallest headset I can use, correct? I've been thinking about Velo-Orange's sealed bearing headset, which is 41mm (I guess I'm not allowed to post a link, since I'm a newbie, but it's on Velo-Orange's website). Can I assume because the threading on the steering tube is so short that I'll need some spacers as well?