James, After removing the large Allen screw on top -and it usually takes an extension on the wrench as it should be torqued to spec- that knurled ring/nut will be used to snug up the steering head bearings. Be sure to loosen the top pinch bolts so the triple tree can have some movement.
If the knurled ring is boogered up, you can't do any worse than using a large pair of slip joint pliers. With the bike on centerstand, snug the bearings until it takes just a light push on the handlebars to get the forks to full slowly to the stops.
If necessary, tap the triple clamp down and refit the large Allen screw. Tighten the pinch bolts, too.
Now, move the handlebars slowly through their full arc. If you feel any notchiness... it may be time for new bearings top n' bottom.