45 degrees either side of straight ahead is OK, but any further and it's somewhat stiffer to turn, OK to ride with but I'm concerned for the general health.
It's a 15+ year old headset, so I'm assuming
1) Drop out fork, inspect for signs of wear and pitting
2) if it looks nasty, replace once I can find the relevant bits
2a) if not looking nasty, regrease and put back together
Anything else to consider?