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Prolly would not hurt. This may be obvious, but was not to me for a long time, if that is an auto, use the sealant rated for auto trans fluid.Do I need any sealant on here or is the gasket good enough? Also, how about do I need thread lock on here? Thank you.
Does he need the gasket as a spacer? That's why I didn't recommend gasketless.Pick one or the other avoid using both, if you "glue" the paper gasket it really makes it a pain when you have to service/remove it. I personally like the gaskets and have never had an issue. I've also used Ultra Grey when a gasket was not available, a little bit goes a long way and sometimes it makes for removal/servicing parts harder to separate. I will sometimes use a few small dabs to hold my gaskets in place prior to assembly. But way to use the sealant is to make both mating surfaces oil free and apply a small bead all the way around and let the sealant tack up ( it should form a very light skin in about 10-15 mins depending on temp ) and then install and torque to spec.
As for the bolts that attach the transfer case to the extension housing I've always used liquid thread sealant with Teflon, never had an issue. If you want take it a step further you can take some liquid thread sealant and mix it with some RED Loc-tite until it turns into a paste and apply it to the threads of the bolts and install. It simulates the factory style of sealant that it currently on the fasteners.
Does he need the gasket as a spacer? That's why I didn't recommend gasketless.