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the install tool is basically a pipe with the right diameter. If the bearings are rusted shut though... :/
Yep. It's called Ernie :) You can use something else; thick PVC pipe for example. Anything that spreads the load across the top of the steerer but doesn't bash whatever the lockout dial / button is attached to.
Don't worry about the headset bearings - they are easy to get off regardless of how rusted up they area.
The bb is also stuck, is it ok to use cola and hot water? I don't want to damage the paint.
How stuck? Have you resorted to bolting the tool on and using a huge breaker bar?
If not try that. Easier with the wheels on. Next, clamp the tool in a bench vice and turn the frame....
http://jumpsport.cz/media/files/4_HeadShok-Fork-pages(1).pdf some diagrams and tool numbers... the install tool is basically a pipe with the right diameter. If the bearings are rusted shut though... :/
And...
http://kearnsafix.blogspot.co.uk/2011/10/rebuild-of-cannondale-headshok-els.html
Headset bearings size: Outside 50,8mm
Inner diameter 39,6mm ( inch size is 1,56 )