I'm assuming you have the spacers you want on it and the bar height is correct for you. If so, the fork should be cut such that the top of the steering column is 3-5 mm below the top edge of your stem or spacers (if there are spacers above the stem). You can determine this by removing the top cap from your steerer tube (if your stem is securely tightened, this won't change your headset adjustment) and looking to see if the top of the steering column is recessed 3-5 mm. If it's not recessed, then the headset can't be adjusted properly. If recessed too much, then the stem attachment might not be safe.
Oil is good, grease is better.
2007 Peter Mooney w/S&S couplers/Terry Butterfly
1993 Bridgestone MB-3/Avocet O2 Air 40W
1980 Columbus Frame with 1970 Campy parts
1954 Raleigh 3-speed/Brooks B72