Headset Issues. Help!

three more words:
Local bike shop

if you're as clueless as you sound about headset fitting, it's well worth paying somebody else to do it. Bodging it without the right tools or the right skills could destroy your new headset, or even worse render your frame scrap. Getting it done professionally will cost £10 to £20, and they will tell you definitively if you have a headset which doesn't fit your frame. In the worst case, if a bike shop wrecks your frame in their workshop, they'll have to replace it.

+100