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I've had good luck with my Percy's dead soft aluminum header gaskets, they are reusable and wont burn out. I bought them 2 years ago at Autozone for about 40 bucks.
I've read that you don't need a gasket if you use the high temp. silicone sealers (Orange or red). I am in the process of bldg an engine and plan on trying it.
As far as application goes would you put it on the inside of the hedder flange to take the place of a gasket or bolt it up and seal around the outside edges of the hedder?
I'd put a bead around the exhaust openings then bolt the header to the block. Similar to using the silicone to seal the front & back of the intake manifold.