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Is teflon tape ok? -> Oil leak at pan drain plug 200 1981

I found an original Volvo oil temperature gauge last summer, and just this summer bought the proper (OEM-VDO) drain plug style sender from Volvoworld.com. This oil change I decided to put it in, it didn't fit quite perfectly, like the threads were slightly different, but it went in with some light (no, seriously) pressure. Used a new copper sealing ring too, the kind IPD gives out with their Mann filters. Now I'm getting a slight oil leak around the plug in the oil pan. Hopefully I haven't stripped any threads, but I'm hesitant to drain all that oil again to see until I have some ideas.
Questions:
1. Should I be doing something different with the sender? Do I not need to use the copper ring? Anything odd about these senders?
2. Is it a bad idea to use teflon tape to try to stop the oil leak? I'm envisioning small bits of the tape floating through my oil passages and thinking the motor might like me even less after that. Or is it pretty much kosher?
3. I haven't started wiring it up yet, is it anything more complicated than running a wire to the back of the gauge? I already have the gauge in and lights connected.
Thanks in advance. I'll be driving it to the Garage Sale unless I'm still dribbling oil all over the garage.

Logan






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