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No, I don't think it was you that caused the confusion. After looking at mine a couple of times, it seemed like maybe they were supposed to go on the inside too. Then I read that pesky shop manual and it said they go on the outside.
You're right about the tightening stuff. I put very little torque on the nuts the first time and let the gaskets and gasket sealer do it's job. After a couple of hours on the engine, I tweaked the nuts just enough so that they wouldn't work loose. No leaks yet, I think I've got that licked. Unfortunately, I got rust spots on both covers so I have to take them off again to repaint. So it goes ...
Good George, I'm glad to hear it. Just to add a little info to the thread, the posts do have a lip that is just the right height. When the rubbers are slid down, metal side first, they sit at just the right elevation to seal against the inside of the valve cover. To anyone reading this post I would like to point out again that most covers that have been installed with the rubbers on the outside are pprone to having some flattening over the years. In that case, I am sure that the rubber mounted underneth would not work and prob cause much oil leakage. Jag