Thanks guys.
Here's my status update: I've taken everything apart, and wiped down all of the headset surfaces. I don't see any pitting, so I assume the grinding noises were just due to grit in the mechanisms. The ball bearings were caged (thank goodness), and I've put them in a jar with some degreaser to soak, and I'm agitating it occasionally. In about twenty minutes I'm going to give them a final clean and wipe, and start putting stuff back together. Hopefully I'll post a victory message afterwards