So I think I might go ahead and do a replacement on my headset on my bike in the near future and from my research what little I have done the price VARIES big time....so I am looking at a cap of around $40.

My bike is a 85-87 Nishiki (Japanese Nishiki) road bike.....

I have no idea if it was ever serviced, rebuilded or has a fairly new one on it. So I am just going to assume its never been touched at being a 25 year old bike.

So can I get some recommendations on a headset please?

Well, if you're anything like me, you'll buy a good or decent quality headset and still scoff at having the bike shop press it in for you. There's really no good reason not to spend that $20, so my recommendation is either to camp out for a bit, watch Craigslist and ebay, waiting for a King to come up cheap, or try a partial trade if your funds are limited. Don't skimp on the install. If you're pounding the new headset in, you're defeating the purpose, just my $.02.

I bought a King on CL for $40 and paid my LBS $15 to press it in, remove the crown race, and adjust the tension. Money well spent. Years ago, I bought a crappy cheap Cane Creek thing and pressed it on myself. Spent $32 total, and it worked. NOTHING like the buttery smooth action of the King though.

Servicing a headset it really not that hard. If you are willing to get a new one. Why not try to take care of it your self first, then if your not happy with it buy a new one. Unless less it really feels bad its probably Ok. It might be smarter then spending even $40 for just a headset on a 30year old bike, and you can learn in the proses.

*All you will need are new bearings. (count all of them and take one in to a shop and ask to get some new ones, sometimes the top and bottom might be different, they will size them and will have the right bearings. Even it they are in a cage, they can sometimes be popped out and the cage reused, if not you can just add more bearings, just get some extra.)
*Grease. witch if you are doing anything with your bike, even taking on and off pedals your self its a must you have bike grease around.
*and maybe one headset wrench witch you might be able to borrow if you are friends with your LBS, or just buy for $8.
*rubbing alcohol is fine for all the cleaning. and rags

the only thing that takes some work is getting the headset tightened down right. it might take a bit of time but don't be afraid.

Well that is what I think.

other then that Velo Orange has some nice classic style headsets.
Sealed
https://store.velo-orange.com/index.p...g-headset.html
others
https://store.velo-orange.com/index.p.../headsets.html

How about one of these Tange headsets: https://aebike.com/product-list/tange...00-m2386-qc30/ Inexpensive, and should look nice on your Nishiki. Being traditional ball-bearing models, they'll tolerate imperfect head tubes to a fair extent.

I'm with amckimmey -- give this one a shot first. It might only need to be cleaned & repacked.

If it has bearings in clips, consider using loose balls for the repack. Loose balls will contact different points than clipped, so that switch alone might help you avoid any old pitting (unless it's severe).

Be sure to use a front fender or "headseal" (Lizard Skin has one that's easy to find) to keep that lower race clean.

If you must replace, consider an old MTB headset. Maybe heavier, but more durable.

-Peter

Get one of the Velo-Orange headsets. They are high quality for an excellent price.

The Cane Creek C2 (if I remember correctly) was my choice for years, nice quality and moderately priced. Since I commute daily, in all kinds of weather, I ended up replacing my entire headset yearly. That was until I upgraded to a Chris King I got (new) for $80 on Craigslist. It's been in for nearly 5 years ago and it's still perfectly smooth with no indication of wear. One of the best upgrades I've made (the other is my wheelset; Velocity Chukkers/White Industries MI5 hubs), my mentality is to pay a little more for quality and enjoy more rides as a result.

Bump up to something with a cartridge sealed bearing, at least on the bottom race,
that is where road shock hits first.. cartridge bearings don't come out of adjustment,
within themselves.