There are shims commonly available to get around this- some stems even come with them! http://www.sjscycles.co.uk/product-SJSC-Threadless-stem-Shim-adapter-1-1-8-inch--28.6-mm-to-1-inch--25.4-mm-3618.htm http://www.evanscycles.com/product.jsp?style=10299
@provenrad started
London Fixed Gear and Single-Speed is a community of predominantly fixed gear and single-speed cyclists in and around London, UK.
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There are shims commonly available to get around this- some stems even come with them!
http://www.sjscycles.co.uk/product-SJSC-Threadless-stem-Shim-adapter-1-1-8-inch--28.6-mm-to-1-inch--25.4-mm-3618.htm
http://www.evanscycles.com/product.jsp?style=10299