They way I do it, with great results.
Make sure the block is clean. The top of the deck is clean and smooth, and all the old head gasket is removed.
I suggest that the head stud holes be cleaned out well with a tap, cause all your doing is chasing the threads, and cleaning out the old GM thread sealant, your not cutting new threads.
Once that is done, you clean the holes again with a pipe brush and brake cleaner.
You then use Teflon Paste that has a very good heat range, I believe what I use is in the range of -30*F to 500*F. You want to put some on a screw driver, and apply it down in the holes of the block. You also want to apply a good amount to the studs them selfs, so thick you pretty much pack the threads full so its smooth all the way around, up and down of the lower threads with the paste.
You then hand start them into the block, and run them in all the way and pre torque them in with 10 lbs. ft. This does nothing more than make sure they are fully seated in the block. If your doing it by hand...you will never get them to bottom out.
install the head gasket...I have installed the MLS 3 layer ones dry and never had a problem. I have reused them so far 3 times with copper spray and no leaks...so do what you like. If you do install them with copper spray, give the gaskets a quick wipe down with some rubbing alcohol and hang them from a hook, and spray on several light coats of the copper spray till its evenly covered, DO NOT GET ANY RUNS when your painting them. Thats bad!
Install the head gaskets on the prepped block.
On the tops of the studs, where the head stud nuts are, I will apply some of the supplied molly lube to the threads.
I will then install my prepped heads.
I will then take the supplied ARP washers, and coat BOTH sides of them with the supplied molly lube.
I will then take the nuts for the studs, and apply the supplied molly lube to the BOTTOM of the nut that will make contact with the washer, and I also add in some to the inside threads of each nut.
Torque procedure I follow is 40, 60, 80, 90, and then check again later with a follow up 90 lbs. ft.
The pattern which you follow is
5136
7428
1,2,3,4,5,6,7,8 in that order when you look at the head from above.
Pretty much you start at 40lbs ft. and slowly bring the torque up so that the head is being pushed down slowly. Your final number is 90.
ARP says 70 lbs. ft for ARP Molly lube and 85 with 30 wt. motor oil, do not follow this, as this is not specific to your cars 100%.
When I will install heads...I will pull the motor so i can work around the motor fully so I do the job right the first time. You can do the work with the engine still in the car, and do a good job, but this is what I prefer to do if I am doing the work myself.
Copy, and save this for your records if you want to follow this method, I don't know how many times I have typed this up for others. LOL
Enjoy.
~F~