Ummm....did you put the ring back on top of the stem before you put the headset cap back on? If not, it won't tighten properly.
You can lower the bars by removing a spacer or two, but you have to put those spacers back on top (sort of a stem sandwich cookie, where the spacers are the cookie, and the stem is the cream filling). Easy fix.
The other option is to cut the fork steer tube down to match the lower stem height. I'd hold off on this until you're sure that you like the new height of your bars, and then take the bike to a shop to have the cutting done. DH has been riding one of his bikes with a spacer sandwich for almost a year now- he's just now thinking about having the cutting done.



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