With the thickness of the headtube on a 575 my ck headset sits on top rather than over the headtube and you can still see the headtube around the headset(if that makes sense)
Anyone else use this set up ok or is there any other headset that fits "properly"

Mine's exactly the same, its obvious when you have just fitted the headset, but less so when fully built with stem, bars and cables fitted. Doesn't afftect operation one bit. I thought it looked a bit naff, but now its bult up you hardly notice See pic

I used to have one of these Syncros ones – http://www.stif.co.uk/gear/select_options.asp?productid=5373&store=mtb
stuck out far enough and looked good.
now have a RaceFace which sits kinda flush with the headtube.

Smuzzy is right. When you first fit it the headset it does look strange sat at the top of the headtube as shown on my black yeti frame, however once fully built i think it looks quite well. I prefer it this way to be honest and think it looks better than actually sitting flush. No problems with functionality of the headset.