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Actually the studs are suppose to "float" in the block. What I mean by that is they are not to be installed tight to the block but installed loosely, finger tight. You still have the same amount of "thread" contact.
When I talked with the "ARP" tech he said to use their thread sealant. Of course any good sealant would work. I also prefer "Loctite" brand.
Also when torqueing the nuts I would use the "ARP" brand torque lube they sell.