Permatex Ultra Gray, no paper gasket. I've used this method for 15 yrs on 50+ diffs (including one yesterday), they don't leak if done right.
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'09 HP2S, '12 R12GSA, '00 Black 323iT, '02 Alpine 325iT (Track Wagon), '02 Alpine 330iT
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Whenever there's a chance to use an actual gasket instead of permatex/similar, I take. IMO it holds up better and for sure it results in less clean up later.
So, paper only for me-- no leaks.
2005 IR/IR M3 Coupe
2012 LMB/Black 128i
2008 Black/Black M5 Sedan
For sale: 6MT 2008 M5: https://nam3forum.com/forums/forum/c...fully-modified
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