I use the thread sealant most places sell in a tube that is good for gas and oil. It is teflon based.
The rub on teflon tape is (and any thread sealant) is that you don't want any to overlap the end and inside to where it can get into your system and plug something up. Some people use it as long as they keep it back a hair from the end/inside.
The threads should seal all right anyway but the main thing the sealant does is lube the threads so they will tighten up to the right torque and go all the way in. I assume you are using npt (a tapered pipe thread) and not O-Ring Boss or J fittings both of which don't need any sealant but I use it on them to but keep it off the mating surface.
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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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