Teflon tape all the way.. I do ALOT of residential plumbing and as far as I'm concerned, silicone is for caulking inside corners. NOT plumbing. You can use a bit of silicone on your bulkhead gaskets if it makes you feel better, but be aware that the extra lubricant makes it real easy to squease the gasket right out from between the two surfaces and not seat properly. It will also need 24 hours to cure before adding water.