What's your opinion on the use of a thread sealant, such as Permatex' Thread Sealant, for differential drain/fill plugs, engine drain plug? Necessary, not necessary?
I use thread sealer (Loctite 567) on the pipe threaded differential drain plugs. It eliminates any chance of leaks, the plug does not have to be torqued down as much and the threads stay cleaner because gaps in the threads are filled.
For diffs I use teflon tape, especially on the fill plug. This is so corrosion can't make the plug impossible to remove. Teflon tape should also act as a decent sealant.