Actually, looking at that again I might be talking beau larks so check first before twatting it with anything.
There's a bit of a knack to it but you need to stop the lower adjuster nut moving as you tighten the upper "lock" nut against itI have just put it all back together it looks ok but something is not quite right?
When I got the bike it had a tight spot which has now gone. but if I tighten the bottom thread too much the forks go stiff and If I tighten the top lock nut they go stiff as well but the lock nuts are only just over finger tight.
The bearings at the bottom are bearings facing up and on the top the bearings are also facing up are they the right way round?
Tighten the top nut against the bottom one by holding it still, you may have to slacken off the bottom nut a bit more to achieve this without over-tightening the headset, it can take a few tries to get it just right.Just had another go and the good news is the forks now turn smoothly the bad news is both lock nuts are only finger tight which can't be right?
Check the caged bearings are the right way round, it’s posdible to assemble them upside down.
this is turning into one of those circular threads^^^^^^ and loose bearings are quite easy to stick in place with grease
Needs a bigger box.