So ... I've been working on the bike, but not posting so much... time to catch up.
My solution to my headtube bearing cup problem is this...
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I bought brand new 1 1/8 headtube bearing cups, I then took my angle grinder and "dremell" and shaved them down.
Eventually I'll JB Weld them directly to the headtube.
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This left about an inch gap to the top, so I brought the fork tubes up.
Next problem was the steering tube is threaded, so I went down to MY LBS and went through their used parts bin to find a cap to tighten it all down.
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It was to wide, so out came the grinders again and I shaved off the plastic ring around the metal nut. Now it fits.
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So that was a lot of fidely little crap. As I'm sure, most of you all know, you have to go through this using old parts that weren't meant or designed to go together.
I'll have to do some more fine tuning to button it all up in the final construction, but it's good enough for proof of concept at this atage.