I used the red permatex as well, not sure if it is doing anything, haven't noticed anything. Next time I will use some stuff made for exhausts, Napa has some, not sure where else.
I did try it without anything, and it seemed to leak a decent amount (Q4 & Powerbomb). Not enough to hurt anything, but I could hear it hissing where the leak was, and just wanted it to be correct.