Just did mine and used high temp thread sealant but used studs, running early heads on an 8BA block. Reading up in several flathead books and they recommended using new bolts or studs due to corrosion the threads. Any good parts store will have a good thread sealant, make sure it's suitable for water and high temperatures.
The machinist that built my 8ba said to use #2 Permatex. No sealant issues but I'm sure everyone has an opinion on what or what not to use. That said use something but IMO not Teflon tape.