Headset, Grinding -not smooth-

Don't want to hijack the thread with my own personal problems...butI have some related headset issues. When I tighten the top race (?) it will be fine for a little bit then start to loosen itself - esp if I go over a few bumps. If I tighten it more then it binds and doesn't want to turn corners.

I have become used to tightening it by hand at the traffic lights, or while moving. I'm sure this isn't right though!

You should be able to tighten the locknut down onto the top race (independant of the tightness of the top race). Also there should be a notched washer between the two.