checked the bearings, they are smooth and I coud not detect any play, took it apart and back together several times. Without fail the headset binds when turning from side to side every time. Thinking I need to have the integrated cups re-faced, they do appear to be worn.

Assuming your pre-load adjustment is correct, I would say either the crown race is not mounted correctly, bearing mounting is not concentric or the steerer tube is bent. I've never heard of being able to reface a integral bearing cup.
I assume you have checked that the top cap is not touching the frame? This is a common problem and they sell spacers for it.

How old and how many miles on that headset? I had a cartridge bearing, threadless FSA headset on one bike that after 37,000 miles began to exhibit the same symptoms. I either had play or the steering bound and there was no adjustment in-between. Prior to that it had been fine. Disassembly showed the cups and base plate were smooth with no apparent distortion and the bearings themselves turned smoothly with no apparent play or looseness. I put it back together and the same symptoms reappeared so something was worn that I couldn't diagnose.

I replaced it with a Velo-Orange Gran Cru which installed and adjusted perfectly so and has been fine ever since so obviously it wasn't my frame or fork at fault. I guess the old headset was just worn out but I never did determine exactly how.