Perhaps I used the wrong terminology... I used Permatex Form-A Gasket Sealant... twice... on both sides of the paper gasket. Let sit for minimum 8 hours (more like 12-14). Torque could be a key though. Thanks for the suggestion. Sounds like everybody is steering me back to the original application, cleaning/wiping thoroughly, make sure the bolts seat and apply 12-15 # torque.
On another topic, can somebody explain to me the reason why I have an overflow tank besides a recovery tank? And the overflow has a valve for draining at the bottom. And it fills up occasionally and comes out a weep hole in the top? (See the pic) Why doesn't it re-rout back to the rad? Just so you know, I bought the car three years ago with the current config and it's given me nothing but grief the whole time.
