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I think more important than perfect torquing to factory specs is using the right gasket. My newly acquired '89 740 was leaking like a mofo out of the valve cover, it had some cheap paper-thin gasket. The gasket I replaced it with (from fcpgroton.com) was much thicker and has some cushion, like a gasket for this purpose should.
I use the smallest smear of silicone RTV stuff on the semi-circle cam thingy, but not anywhere else -- there's no need for RTV on a flat clean surface with the right gasket.
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