I'm with Alex - that, based on your description, the problem is still 
likely in the headset.  Except I'd go a step further.   When you said "they 
added a spacer because the headset had bottomed out on the threads," did 
you mean they added a spacer between the locknut and the threaded top race 
cap?   Because, if so, that won't solve anything!   If you're running out 
of threads, then the threaded top cap is the part that isn't getting 
tightened down far enough - not the lock nut.   I  would expect the 
mechanic to know this but I suppose that if they're strictly from the 
threadless headset generation, it could be an oversight on their part.

Likely what happened is that, when they faced the headtube earlier, they 
removed just enough material to change the length to where it mattered. 
 Being a Rivendell, the steerer tube was probably sized to put as many 
threads as possible ABOVE the headtube/headset, to allow for extra spacers 
and increased handlebar height.   (the threads that fall internal to the 
headtube are basically "wasted".)  

What you may need is a new headset with a taller stack height at the bottom 
race/cup portion.   Worst case scenario, you may need an extended crown 
race - though it sounds like you're "barely" out of threads, so you'll 
likely be able to find something that works.  Might be an excuse to get a 
King, which are pretty tall.  Or, you could kill two birds with one stone, 
and look for a tall needle bearing option, instead.

just a theory, but looking forward to hearing what you figure out in the end

On Wednesday, August 24, 2016 at 10:19:49 AM UTC-6, Alex Wirth- Owner, 
Yellow Haus Bicycles wrote:
>
> If it were me, I would dissassemble the headset and inspect not only the 
> cups/headtube but also the fork crown/crown race.  Dollars to donuts, based 
> on your description, one or both of those surfaces isn't mating correctly.
>
> On Tuesday, August 23, 2016 at 12:02:58 PM UTC-4, Tony McG wrote:
>>
>> From the beginning: The original owner purchased it as a frameset in '99 
>> because at the time, the future of the Atlantis was questionable. He built 
>> the bike and never rode it because he found a Waterford that he liked 
>> better. I bought it barely used a few years ago and have put a few thousand 
>> miles (mostly gravel) on it. The headset would never stay tight no matter 
>> how hard I dared wrench on the locknut. I took it to a LBS and they removed 
>> the headset and machined the frame so that the headset would fit better. I 
>> rode it for a year, and I still had problems with it loosening. I then took 
>> it to another LBS and they installed a spacer (seems like the headset might 
>> have bottomed out on the threads???). I now have a tight headset, but 
>> I also have a shimmy when I let go of the handlebars. I used to be able 
>> to ride this bike without hands at any speed, but now it wobbles, even at 
>> 10 mph. I don't have any load on the bike except a small seatbag for 
>> tubes/tools, and the tires are the same Soma Cazadero from last year.
>>
>> Any suggestions on what might be causing the shimmy or how to fix it? 
>> Shall I replace it with a NeedleBlasteur from the Riv site and see what 
>> happens?
>>
>

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