Hi I found this Bike Headset Installation guide while searching in Google, it really helped me and I hope it will help others here at Fixya:
Make sure the frame has been reamed and faced, otherwise you will have trouble installing the headset, or the headset won't last very long. If you aren't sure, take the bike to a bike shop.
Seat the crown race on the fork crown. This requires a crown race slide punch. Pound the crown race down until it sits flat on the fork crown.
Clamp the frame into the repair stand.
Lightly grease both ends of the headtube and place the headset cups into the ends of the head tube.
Slide the cup press through the head tube. Install the lower half of the press.
Turn the handle on the top of the cup press clockwise while holding the bottom of the press with a wrench. Work slowly and carefully, making sure the cups press evenly into the frame. Be sure to tighten the cups firmly into the frame, but do not over tighten.
Remove the cup press.
Grease the bearing and install the fork. For information on how to adjust the headset, see related eHow "Adjust a Bike Headset."
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