no reason why it won't work, but you might get better action with an actual Aheadset type headset (1" of course) and a 1" stem will look less clunky (but not much) than the 1-1/8" and shim.Since you have a bit of steerer to play with I'd cut it long and use a stack of spacers, this will help if you make a mistake and need to cut again and also will get the h-bars up to a height more like the quill stem it once had.