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the old 574 loctite is wierd stuff. it cures when deprived of oxygen. i used to use it a lot, but on one 930 engine a while back, there was a nose bearing leak, requiring of course a complete teardown. come to find out the 574 had not squeezed out as it should have when the case halves were torqued. there was enough between the cases to keep the nose bearing o ring from being properly compressed. maybe i got a bad batch, or maybe it was old, but i have been using dirko since then with good results. superman would be correct in saying the nose bearing o ring does not move, so a thinnish layer of sealer around it's contact area on the case bore and around the o ring itself should insure there will be no leaks. also, on reassembly, when the case halves are still an inch apart, check all around to be sure you didn't wipe any sealer off when you were juggling the rods and chain into position, and double check that the square cut red o rings are still in position on the oil pump and in the case half. just behind where the alternator housing sits on the case is another potential leak area. it's the thinnest cross-section of the case, so check that too. torque the thru bolts first then the nuts around the outside. always torque from the center to the outside.
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