I agree, you should torque them properly because of the o-ring.

 

Teflon tape should not be used on straight threads- it is meant to be used on tapered threads, like pipe fittings. An o-ring seal requires the fitting to be bottomed out- the teflon tape can sometimes prevent the fitting from bottoming out.

 

Stripped mine out on the very first oil change, 80,000 miles ago. Since then I've just been able to finger tight with no leaks but guess I'll try the paste from now on just to make sure. Shockproof Heavy Tranny oil.