Originally Posted by
grumpus
If the bearing surfaces aren't totally trashed I would try reusing the headset but with loose balls instead of caged. A bit of roughness is OK as long as it's not loose or so notchy that you have "indexed steering" which interferes with bike handling. That's just as a stop gap, if the bike turns out to be viable it should probably have a new headset.
+1. Many recommend loose balls if the cage results in fewer balls. To the OP: The female race (cup) for the headset, put grease in that, it will hold the balls in place while you assemble. To put those tiny balls in place in the grease, I like to use one of those skinny wood flat paddles for stirring coffee. It's non magnetic. A little dab of grease on that, then touch to the bearing ball, lift and place in the bearing cup fully into the grease, slide the wood stick out radially, and the ball stays put. Try to have something underneath to catch a loose bearing ball, unless you have plenty of new ones the same size, so not a big deal to lose one onto the floor.