Use your gaskets obviously on the heads, I usually put a tad of sealant around the water ports on the gaskets both sides. A nice thick bead of sealant on the ends is OK, but as Steve said let it set up a little before install so it doesn't squish out.
One thing to think about when installing your intake is the locator pins, sometimes they can actually hold the intake up and not allow a good seal.
Can't really say about the right stuff, never used it. I just use black Permatex.
