Got my 2011 Demo to work properly with my Fox 40 and NSR4 rack
Just thought I'd share this tidy little solution with you guys.
1. The Fork. Curse Specialized for not accommodating the Fox 40 lower crown. The combination of flush integrated lower headset cup and down tube diameter/curvature causes contact with the rear-facing bolts on the 40 lower crown. In the event of a major crash this would cause huge dents. It also hugely limits turning radius.
The Fox40-specific bumpers provided by Specialized are totally insufficient. The vast majority of riders will be using either a Boxxer or a 40 so it seems like a huge oversight on an otherwise brilliantly-designed bike to overlook this problem.
So I ordered a standard lower 1.5 > 1 1/8 reducer lower cup from Hope (can't remember the exact product # - Lou or Andrew from Obsession in Vancouver could tell ya!). Nice sealed bearings. Its 7mm stack height gives the crown bolts just enough room to clear the down tube. Obviously products from other manufacturers could achieve the same end.

The extra height wasn't an issue for me as I'm already struggling to get the front end tall enough. I had enough steerer tube to spare. Turning radius is now awesome again.
2. The Rack. The headset also solved the NSR4 rack compatibility issue. The original problem was that the 1.5 head tube would sit flush against the lower crown giving no room to manoeuvre the rack prongs in. This lower cup gives the prongs more room to get around the crown. Works great.

First world problems, huh?