Opinion question on intake install
 

Should I use sealant on gasket during install? If yes then what sealant do you recommend.

Put gasket on dry,tighten hardware in stages in a criss cross pattern.

i use a really thin coat of silicon, more to keep the gasket from sticking if/when it comes apart again.

the kind of sealant doesn't matter much, except you should never use the orange or blue permatex, those have been replaced with new/better compounds.

I always use a thin smear of sealant, because vacuum leaks (unfiltered air) kill rotary engines.

I just make sure both gasket surfaces are clean and dry and I use a little Sil Glyde on the intake o-rings and install the gasket without any sealer. I've never had an issue. On pitted housings I will use a small layer of Toyota's FIPG. That stuff is incredible and the best sealer that I've ever used.

Success. After removing old carb, found a open port on the intake; blocked it off. Then used Hylomar blue on the intake carb base, heat shield base, bottom of "fat" Nikki; all very,very thin layers. And I'm back in business (without doing intake reinstall again). Thanks for all the advice and guidance.

Glad you found the issue and got it buttoned up. For reference, the carb spacer has non replaceable gaskets. A carb rebuild kit comes with the gaskets but you will ruin the carb spacer trying to remove and replace those gaskets.