First thing, make sure there's supposed to be a gasket. AFAIK those valves are only sealed with Orings, and a gasket will spread the metal parts too far apart and weaken the seal.
That said, I'd also look for blockages in the system downstream that are preventing the oil from returning to the reservoir and causing the pressure to build up.
From the way it sounds the relief valve is not working and if you put it together so the gasket can't blow, something else will blow. Probably, something expensive and/or no longer available as a replacement part.
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Today's Featured Article - What Oil Should I Use? - by Francis Robinson. I keep seein this question pop up over and over again in discussion groups all over the web. As with many things there are often several right answers and a few wrong ones. Some purist I'm sure will disagree to no end with what I will tell you but most of us out here in the real world don't really care do we ? Some of them only bring their noses down out of the air long enough to look down them anyway. If you are like me you are only doing this old tractor stuff because you enjoy it. You
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