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    Aside from fitting the steerer tube (which you indicate is 1" threaded), the headset needs to fit into the head tube. That head tube from your photo seems as though it might be "oversized" and thus take something other than a standard-sized headset. Since you've already got the pressed-in cups in place, perhaps you can just clean the races, replace the ball bearings packed in grease and tighten things appropriately. The "ring that holds the ball bearings" may have just been a disposable cage. If you could post close up photos of all the top and bottom components of the headset it would help us
    – Armand
    Commented Jun 23, 2021 at 7:04
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    All old-style, meaning cup and bearings are still available, mainly because there are just about standard and oversize types in those days. The possibly required tools should be stock of every decent LBS. But as @Armand writes, bearings, grease and a light hand with wrenches would most certainly sort out the problem. I personally have a vintage bike (80y+) that still runs on the old cups with only the bearings & grease replaced 30y ago. Those things usually last.
    – Carel
    Commented Jun 23, 2021 at 17:24
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    Thanks for the photos - if you have some of the (now empty) head tube of the frame showing the cups on the top and bottom end, that would be great. The bottom bearings between the race at the crown of the fork do almost all the work, since the weight of the frame is pressing down on them. The upper bearing race system at the top of the head tube, with the top race, washers and hex locknut screwed on, serve mostly to keep things together.
    – Armand
    Commented Jun 23, 2021 at 23:57
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    It looks to me like your upper race (angled shiny section) and that knurled disk are installed upside down. If you get new ball bearings (don't mix new with old) and install a set in the top cup with grease, then screw the top race down onto the bearings, then the knurled disk, perhaps the spacer, then the hex lock nut, I think you should be close. On the bottom, just put new bearings and grease between the fork crown race and bottom cup. Bottom line - you may get by with just a bunch of bearings and grease after careful cleaning.
    – Armand
    Commented Jun 24, 2021 at 0:01