I think the stuff you want is Loctite 565 thread sealant. Most HD shops carry it.

 

 

Same as the Permatex and perm is cheaper .

 

Fair warning here:
Do not use thread sealant of ANY kind on your drain plugs. That's what the o-ring is there for. Make sure the o-ring fits tightly in it's groove, is not damaged, and snug is as tight as they ever need to be tightened.
Pipe dope will gall the threads on your drain plugs plus it pushes the o-ring out of position. It is meant to seal tapered pipe threads. HD drain plugs do NOT have tapered pipe threads.

 

The reason I asked this to begin with is that it was on there from the factory. Why is it there if it will do damage? Is this a shipping thing?

 

Mouth,
I've never figured that one out. Plus the o-ring that used to come with the 'HD oil change kit' was always too big and would push out of it's groove and/or tear every time I snugged them up.
Went to my local bearing supplier and bought a couple dozen o-rings the next size smaller and the problem went away. I now re-use that o-ring 3-4 times before it needs to be changed out.
I have over 45 years of mechanical experience and to date HD dealers are the only clowns I've ever seen use pipe dope in this type of application.

 

The drain plug supplied by HD has thread sealant already on the threads. It's not teflon. It's a sealant similar to Loctite 565. It could actually be just that. Anyway, the sealant is probably overkill since the Viton rubber o-rings HD supplies seal very good.

 

The workshop manual doe s not advise using sealant, just a new 'O' ring. Works for me along with the correct torque setting.

 

I never put anything on the threads.
Done dozens and dozens of oil changes, wipe down the plug and change the O ring every other oil change.

Never had a problem.

 

I don't use sealant either, just the O-ring. I don't even torque it either - I mean, what's the setting? A handful of inch-pounds! So, hand tight then...

Never stripped a thread, never had any leaks.