I installed the tapered stem bearings last night with the 4mm spacer that is included in the kit (Parts+Plus SSH750). This left me with only a few threads on the stem for the stem nut. Plus, it rippled the lower seal and was causing drag with the bearings.
Today, I reassembled the stock lower bearings and compared them to the tapered set. There was about a 0.75mm difference w/o the spacer. So, I reinstalled them in this order: thin stock washer, rubber seal and bearing cage. This gave me enough thread on the stem to properly seat the stem nut.
I used a "long fiber" grease from Valvoline, Cerulean Heavy Duty. Requesting "long fiber" bearing grease stumped the guys at AutoZone and NAPA. A little googling turned up a comparison of grease. There are two basic types of grease. One is "long fiber", if you stretch it out between your fingers, it has long threads. This is used for low speed applications like stem bearings and swing arm bushings. The other has the consistency of butter. Yum!
After inserting the stem and adjusting the stem nut, the steering is nice and smooth. The front end has been reinstalled. I decided to stick with the rusty headlight ears for now. Next year, I'll go with the lowering kit and replace the fork tubes and use universal ears.
Success! Tomorrow we're picking up the engine. I plan on pulling the top end and seeing just what is going on in cylinder #4. Hopefully, it's just a stuck ring. While we're in there, I'll measure the cylinders and see if it really does have an 836cc kit installed.