First, what is headspace? It can be defined as the lengthwise free play of a cartridge in a closed chamber.
For a rimmed cartridge the lengthwise play is controlled by the thickness of the cartridge rim vs the distance from the face of the closed bolt to the chamber end of the barrel. It headspaces on the rim.
For a rimless cartridge the free play is measured from the bolt face to to the shoulder area in the chamber. If a loaded round has any freedom to move back and forth in the closed gun, you have headspace. It headspaces on the shoulder. A little headspace is ok but too much results in 'head separation' meaning that the brass breaks in two in the gun.
For a belted case, the free play is measured from the bolt face to the forward edge of the belt recess in the barrel. It headspaces on the belt.
Having said all that, a belted cartridge only headspaces on the belt the first time it is fired or after being full length resized. If it is neck sized only and then reloaded it will headspace on the shoulder and not on the belt. This is the correct way to resize belted brass.
In all cases the 'correct' headspace is that which (a) the brass is held snugly enough to prevent fore and aft movement, and (b) you can still load it reliably into the gun.
Go to:
http://www.google.com/and type "headspace in firearms" into the search box for everything you ever wanted to know about headspace.