GET NEW PADS.... but first:

Put your finger by where the headset and headtup meet. if the cups are moving your headtube is ovalized and your ****ed. The kludge would be to get a new headset and have it jbwelded into place but thats not really worth it on this bike.

If there is no play there try between the crown and the cup and between the top headset parts. If there is play here you may have reinstalled the headset incorrectly.