I might have worded the previous post poorly -

One kind of sealant goes in corner where the head meets the block. Just in the corner. Then slide the horseshoe gasket into place. Apply the other sealant to the vertical surfaces of the front cover/distributor housing that contact the head. Lubricate the top of the horseshoe gasket with spit so it doesn't move when you put the front cover in place.

The front camshaft seal doesn't need any sealant. Oil the rubber lip before you slide it over the camshaft.

Sixto
95 S420
87 300SDL