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I use the yellow Teflon (Harvey 017065) that resists oil, gas, etc., and put a little Permatx PTFE thread sealer (80632) and torque to spec (in my case, it was 39 lb/ft), which is an NPT 1/2 14 pipe plug in the rear differential (seems like cast iron). Things to know: You have to put at least...

I use Loctite 592.