I'm about to put my case halves together. I have aviation form-a-gasket (non-hardening) for the case halves but what do put around the camshaft seal. Last thing I want is leaks, especially fom this thing. TIA

I've never put an engine together...
well only pistons barrels and heads....
and i like to use the non hardening avaition gasket cement
or permatex.... [very similar]
I didn't know that camshafts in VW engines had a seal....

but Crankshaft seals etc... I just use the avation cement
mainly to lubricate the rubber as it goes into place...
seals, in normal circumstances usually don't leak around the outside...
If You are using a double lipped seal [inner] wipe some oil around the seal between the two lips, so its lubricated...
as the lips usually wipe clean when they go over a shaft etc...
I forgot to take a pic of My crankshaft seal...
its behind the auto flexplate...

Cheers

Lee

http://community.webshots.com/user/vw68autobug 

If yours is the steel plug type Andrew, just use Permatex.
Some late cases used a rubber plug in that location, like a seal but with no hole.
I would not use that rubber seal in that case with the location groove...some people may have, but I have not tried it.

Thanks Dave..

Maybe this is what you could do now your unemployed...start up a website
pay per question answered...

Lee, the bit that looks like a bottle top that seals your cam on the flywheel end.

I use loctite 518, the red clear stuff.