3/8" grade 5 bolts in cast iron should be torqued to 30 ft-lbs according to the chart at the front of the service manual IIRC.
I have never used any gasket sealer-type products on the rear cover, but I think I will use some form-a-gasket next time. When I went through the rearend in my 1872, I cleaned it to near perfection, made sure the cover was flat, used new bolts and gasket, torqued to spec and...it leaves an ever-larger spot on the floor. I might have to drain out all the Hytran and try again...
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