Re: 63' Johnson 18hp, Sealant
Yes, put sealant on everything: the flanges and the bearing o-rings. Just don't gob it on or allow any to come in contact with the bearings' internals or seal faces. The o-rings alone cannot be trusted to seal.
I've never tried anaerobic sealant on these, and I wouldn't trust it to work. Some areas really don't have a lot of flange area and the spaghetti is intended to be the sealing surface. I doubt the anaerobic stuff would work very well on the o-rings. 1000 sealer is the proper stuff (Boat armour brand or marpox). BRP no longer provides it, and rather offers 847 Adhesive Sealant (a 3M product) for that application.
I have had great sucess with Permatex Motoseal Grey in that application. It is meant for sealing 2-stroke crankcases and is very much like 847 and a little easier to find.