First, thanks for all the replies. Very enlightening. By way of background, I worked as both a shop & race mechanic in the 80's and have probably installed & adjusted 100's of headsets. Up until now, I can't recall a Campy NR headset I personally installed ever developing "indexed shifting". (Of course this could be product of selective memory) My "other" bike is an '83 Scapin with the original headset & it's still smooth as silk. Since I presently don't have a new HS to install, I elected to rotate the cup & race as suggested, install loose balls and use a new (Park Polylube 1000) grease. Everything feels correct. Of course a few miles will tell for certain. When I originally installed the HS in August, I used Campy grease from a 1 lb tub I've had since the 80's. When I took the HS apart today, I noted that the grease appeared "thin" (for lack of a better term). Thus, my first conclusion is perhaps the old Campy grease I used has lost some of it's lubricating properties. (I'm not a chemist...I'm just speculating.) Second, the HS I installed was one I had on hand. It was not in a box. Furthermore, I don't recall how acquired this HS. Hence, while I thought the HS was new, it's quite possible that it was not. (The balls in the retainer I know were new.) If the HS was not new, then it may well have previously suffered some level of "damage". Given the above, I'm speculating that these 2 factors may have contributed to the problem. Of course it's possible that I may have over-tightened the HS, but my ego wants to believe that it may not have been my own doing. In any event, thanks for the all the input. Jeff Holt