Originally Posted by rviglierchio
Is this thread tape used anywhere around the engine?
Generally, teflon tape, while serviceable, is not recommended for engine/oil lines. If a bit of tape is wrapped over the ends of the threads during installation, it can break off and get stuck somewhere important inside the engine.
The "goop" you saw is a teflon filled pipe dope (I get mine from ACS, but there are probably many other places to get it - a small tube has lasted me 6 years, so the cost is immaterial). It works great, can't clog up the lines, and is sticky and gets all over your fingers :-).