The recess groove is in the housing as Dave said so the gasket goes directly on the head. I just did this last Monday exactly as Dave described including using Permatex #2. Upon start-up there were zero leaks.
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Neil
1977 Catalina 30
San Pedro, California
prior boats 1987 Westsail 32, 1970 Catalina 22
Had my hands in a few others
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