Originally Posted by
robatsu
If I see a crown race in the condition below, a scoring all the way around (fork race is similar, but not as bad, cups are ok), my assumption is that it is not useable. However, this headset is sort of irreplaceable, at least not easily I think, so before I give up on it, wanted to check to see that my assumption is correct or if there is any hope at all...

That's just worn through the plating, but keep in mind that plated headset races are generally a sign of lower quality parts. Instead of grinding, polishing, and hardening the races, they are simply polished and plated in the hope that the hard chrome will last long enough as a bearing surface. Once you've worn through the chrome, as you have with this unit, you can expect faster wear on the exposed soft steel beneath. There's no particular danger in running this headset, but when it wears to the point that it bothers you just replace it with something better.