I use Loctite (yes, it was Permatex) #3 aviation gasket cement on most paper gaskets, but for the diff gaskets I use Loctite 515 master gasket.
Head gaskets use nothing, unless it's a POS copper one- then I use Loctite 515 along the front around the water holes.
The Loctite 515 is an anaerobic sealer, (sets in absence of air) used for metal to metal seals. Good for air-oil-fuel-steam. I've built a few boxes with no side cover gaskets, just this stuff. It is good crap. $18 a tube though..
I don't like silastic- it goes everywhere if too much is used- which people do- and can plug oilways etc. I've heard of water pump bolts pinging metal off #1 cylinder bore because silastic got in the hole and when tightened up, it hydraulicked the block...
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DrMini- 1970 wasaMatic 1360, Mk1S crank, 86.6HP (ATW) =~125 @ crank, 45 Dellorto (38 chokes), RE282 sprint cam, 1.5 rockers, 11.0:1 C/R.
