RTV ?

After sye install, it leaks at tail shaft housing. Twice it has leaked and been reworked with black High heat rtv. Is there something else I should be using? And there is no interferrence with the shift rod.

I had a similar experiance with mine. It looked like it was coming from the housing, but it ended up coming from the speedo sensor. It turns out it wasn't seating properly, and had damaged the O-ring. :banghead:

Did you put RTV on the splines of the output shaft yoke?

O-ring and yoke seal are ok. It is definately the housing, I am wondering if a blue or orange RTV might have different properties and create a better seal.

I used the orange with no problems but I did have some issues with the oil pump not in the perfect position.

Permatex high temp. RTV has worked out well for me. I don't think I've ever had it leak on anything I've ever used it on. I'm kind of anal about getting things clean and totally oil and grease free before application, that's probably part of the reason it has worked so well for me.
On hard to seal stuff, a gasket coated in RTV sometimes works better than RTV alone. I keep rolls of gasket material around, in various thicknesses and often make my own gaskets. Takes a lot of time, but is usually faster than unit disassembly to do it again.
Check your vent, the pressure and/or oil is going to come out someplace after it heats up and expands.
Many manufacturers recommend letting the RTV cure some, before final torquing.

I also used the orange with no problems.