does the lowest spacer need to be in contact with the frame?
Nothing should touch the frame, unless you have a flexible rubber seal in there somewhere. Any spacer or dust cover needs to be sandwiched between the stem and the upper bearing collet to make the headset work, anything else it does with regard to bearing protection or aesthetics is secondary.
Nothing should touch the frame, unless you have a flexible rubber seal in there somewhere. Any spacer or dust cover needs to be sandwiched between the stem and the upper bearing collet to make the headset work, anything else it does with regard to bearing protection or aesthetics is secondary.