You have the wrong size crown race. The crown race you have looks like it might be for a tapered steerer. The crown race needs to match the headset. Eg. if your headset is tapered and your fork steerer is straight, you need a crown race adaptor (about 5 from chain reaction or $10 from your bike shop).
Take a picture of your frame to see what type of headset you use... this will determine crown race model.