Background I recently replaced some cracked headers on my Jeep XJ. When attaching the new headers to the exhaust with a flange gasket I didn't slide the graphite gasket ring on correctly and it went on crook. The system leaked so I bought a new gasket ring very similar to this one and installed it. To be sure it wouldn't leak this time I used gasket shellac on the ring and flange gasket. I don't know the brand of shellac but it was the one that comes in the little brown bottle. I put a lighter coat on the inside of the ring and gasket and lathered it on the outside of the gasket. I let dry overnight. I started the car this morning to check for a leak. Everything looks good but I noticed the shellac once heated is dripping off the gasket.
Question As I said on the inside I put a light coating but should I be worried about it dripping onto the O2 sensor? On my 95 XJ the O2 sensor is located on the down pipe directly under the headers. What are the signs I should be looking for to tell if I have a problem?
Side Question Some bits of graphite from the old ring may have broken off and fallen into the exhaust when I was doing the swap. Could this cause issues, is there anything I should do about it?
Update 12/18/2017 I've been driving the car for the last 3-4 days and everything appears to be working correctly .i.e. nothing horribly wrong has happened as of yet.