[KTL]

Whatever you use on the #8 saddle, apply it SUPER thin. The #8 is a precise fit in the case halves (it has to be, since it acts as a locating/alignment sleeve at the end of the case) and therefore it will squish out whatever excess it doesn't want in there.

The rationale for any sealant here is that it is a backup plan for o-ring leakage. I like to use the inert Dow 112 o-ring lube since it not only lubes the o-ring but it also protects it from oil contact that degrades the rubber.