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seems to have a very tall compression ring... Is that normal?
That is much taller than it needs to be, and your total height isn't being helped by the bearing not being flush in the head tube. It's possible that the original headset has been replaced with the wrong one, TH make bearings from 6.5mm to 7.8mm high for 1⅛"×36°×45°. TH-873 is the low one which comes in the FSA Orbit IS2 headsets. The collet shouldn't have that much of an extension above the tapered part either.
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@mdcc_tester I'd like one of your headset covers please.
Just tried measuring and my headset seems to have a very tall compression ring... Is that normal? I make it circa 5.3mm from head tube to top of compression ring.