Head tube crack (pics added)

That's a shame as the bike looks fairly modern.

+1 for the cups slightly too tight when fitted. I have an Orange 02 MTB & have fitted a few headsets in that frame, but I'm very careful in pushing it in squarely & make sure the cups are not too tight to begin with. The last cups I fitted almost pushed in by hand & I just finished them off with the press. They were still tight in the frame. This is how I think headsets should be when they're fitted.

If you're not bothered about paint, I'd definitely have a MIG welder look at it.
 
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