You have some good oil pressure! :-) Try the tape, make sure its only on the threads and only slightly over 1 wrap you dont want to much since I believe it is a tapered fitting. I used PTFE paste (but my motor has no oil in it), but you need to make sure its able to cure. some of that stuff requires air to cure, and if you only put it on the front few threads it may never cure. they do make special stuff that will cure when only in the presence or oil.
2001 ZX3 2.0L Zetec-
Hatch Nation #42
Going through Rebuild See "The TICK Build Thread" for details (http://www.focusfanatics.com/forum/showthread.php?t=289168&referrerid=62897)