I used Permatex No. 2 with great success sealing the head studs. A coworker recommended it. Also, I found a good number of positive posts for it with a general search of the internet.
Something called Indian Head had a lot of recommendations also.
I tried the ARP sealer the first time. It leaked. The sealer clearly looked like it was being partially dissolved by the coolant. The deposits could be observed along the length of the stud. If there was any contamination on the threads (thoroughly cleaned with tap and solvent) then the sealer should have bonded to itself and come off in pieces. Unfortunately, it looks like it is not truly compatible with the coolant under engine operating conditions.
My conclusion from personal observations and experience of others later:
DO NOT use ARP thread sealer.